Warning Signs That Foreclosures Are On The Horizon
David and I took a deep look at the warning signs that the real estate market may be cooling off soon. In the Canadian market, for example, 5-year mortgage renewals are coming due for the first time since people locked in at the rock-bottom Covid rates. What will happen when this large group of investors remortgage with the current rates?
In the US, with 30-year mortgages, it’s more the employment factor that can tip the balance. For example, when a double-income couple purchases the most expensive home they can qualify for, what happens when one of them loses their job?
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Key topics and questions David and I talked about include:
- 0:00 – Introduction.
- 0:46 – Canadian and US housing markets.
- 7:37 – What happens to the banks when real estate slows down?
- 12:45 – Residential vs commercial real estate.
- 13:55 – Housing supply.
- 17:10 – What are the indicators of housing correction?
- 19:42 – Tech vs the rest of the stock market – how to trade a concentrated market, and the danger of being part of the herd?
- 25:13 – What is a sector-driven market, and how a ‘safe’ position can just be an illusion?
- 34:00 – Are you bullish on gold and silver?
- 36:26 – The US Dollar Index – will the next crisis cause it to surge higher?
- 37:50 – What is Asset “Revesting,” and how is it less risky than a diversified portfolio?
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Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the interview date but may not be accurate in the future.