THE WisdomTree BLOG
With each pop higher in home prices not being met by a commensurate rise in rents or wages, the great Toronto housing experiment may be living on borrowed time. If the incidence of troubled loans should mean revert, it could be time to be under-weight in Canadian financials.
Is the footing getting shaky in Ontario housing? The Teranet–National Bank National Composite House Price Index for Toronto rose 272.8% from its inception in July 1998 to the peak last summer.
Rising rates have been hindering high dividend equities in the last couple of years, but over any sizeable timeframe, the causal relationship between rates and equity factors has been cursory at best.
Following one of the most tranquil years in stock market history, volatility came roaring back in late January and early February. Emerging market (EM) investors who may have expected the performance of EM to be worse than that of the U.S. were likely pleasantly surprised.