A practical approach to determine economic outcomes in Canada and the US is to simply look internationally, and no one is disagreeing that this is a period of intense world change. In the first six months of 2015, $500 billion left China bound for stable governments and economies. We have seen this first hand in Canada over the past 12 months with over 70% of Vancouver and Toronto real estate (single family dwellings) being purchased by Chinese buyers. Other international real estate markets that have seen foreign investors park their wealth are New York and London. Adding to the mass exit of funds out of China, turmoil in Europe (with the exception of London) has also resulted in money heading to the United States and an expected rise in the US Dollar. In contrast, the Canadian dollar as well as the Euro are forecasted to fall. A lower Canadian dollar is anticipated to maintain low mortgage interest rates and keep Canada’s real estate market very attractive. At a recent presentation I attended in Toronto, Michael Campbell mentioned Blue chip Canadian and US stocks are also an investment to consider.
At the end of the day, I am certainly grateful to live in Canada!