Fire Burn and Cauldron Bubble (with apologies to William Shakespeare).
Just in time for Halloween: The UBS Global Real Estate Bubble Index ranked Vancouver as #4 in the world.
Almost simultaneously, Canada Mortgage and Housing Corporation (CMHC) issued a report warning that home prices are now outstripping fundamentals in 11 of 15 major markets and that four cities: Toronto, Regina, Winnipeg and Saskatoon, face serious headwinds because of high prices and a surge in the supply of new homes under construction.
And, the CNN Fear and Greed Index has jumped from "extreme" fear to greed in just one month.
Low interest rates for long periods of time can push asset prices to very expensive levels.
Trick or Treat?
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist