Summary
- Currency weakness is being driven by GDP issues, which are not tied to the health of the Canadian economy as directly as we think.
- Economic weakness stems from weak commodity prices, an improvement of which would drive the economy well past where it is today.
- Concerns about over-leveraged Canadian consumers and high price of Real Estate underestimate the ability of Canada’s Financial System to compensate.
- The main investment vehicles within Canada are being dumped along with energy and materials, despite the remaining companies’ value and lack of exposure to those assets.
- There are opportunities in Canada for those who are bullish and bearish on commodities, and the housing and debt factors are less influential to the thesis than many believe.
As a commercial banker, I have seen the issues I hear so many pundits speak about, and I have my own opinions about the very curious case of Canada.
