Skip to content
A summary of what The Globe and Mail & # 39; s market strategist Scott Barlow reads on the web today.
The Financial Times links to a column on the Canadian housing market of the website The Macro Tourist. I am familiar with Macro Tourist, but not very familiar, so readers with credibility can judge for themselves.
The result of the analysis is that regulatory efforts to curb housing prices in British Columbia are too successful & # 39;  Story continues under advertisement
"Do not forgive me for some unconscious, crazy Canadian housing bull, I think prizes are crazy, but what I think is even crazier is the amount of balance expansion of global central We must always remember – the Canadian real estate bears fight against the authority that has the power to dictate the amount of assets in which we will not generate all these other assets in … [new regulations] anywhere in the neighborhood of $ 200 million a year in revenues because foreigners dump their property faster than Lindsay Lohan beats the pomegranate vodka martini at the Oscars pre-party … I suspect this policy will be successful in cooling house prices – too suc cessful. "
Nobody will shed any tears if Vancouver's house prices, or Toronto's prices, drop by 10 percent. A larger drop entails risks associated with underwater mortgages and bankruptcies of lenders and construction companies.
"The pricks of the Canadian housing bubble?" – Macrotourist
Goldman Sachs immediately blames & # 39; the machines & # 39; – algorithmic funds called Commodity Trading Advisors – for recent volatility in crude prices,
"The decline in the position of managed money during the sale was concentrated in products in which CTAs tend to index … Unlike other traditional speculators, trend-following funds do not attempt to reread the curve on the basis of well-informed opinions about future supply and demand, because they become an ever-increasing driver for managed money positioning and volatility, the commodity prices increasingly run the risk of getting off the ground temporarily: we see the latest sales as a good example, given the fundamental fundamentals remain robust. "
" SBarlow_ROB GS: accuse the machines for oil price volatility "- (research excerpt) Twitter
He t was a time in the 2000s when the number of investment funds exceeded the number of shares in the index, a sign of oversupply to fund managers. The boom in the listed fund (ETF) has created a similar situation because Bloomberg reports that there are now more indexes to base ETFs than stocks.
The Financial Times warns that index addiction is unlikely to end well for investors because comparisons with the past are likely to be futile,
"Another problem with index-based analysis is that it obscures major changes in the components of these benchmarks over time This becomes especially problematic for those who rely on historical average rating multiples for an index to draw conclusions about today Elroy Dimson, Paul Marsh and Mike Staunton from the London Business School have shown that in 1900 more than 60 percent of the value of listed American shares in rail sat for for technology. "
" Modern finance must become addicted to indices "- Financial Times
" Investing in index funds is no longer passive "- B loomberg
Tweet of the day: this whole discussion e about the Canadian business investment is worth reading,
"@ LJKawa This is at least a body-slap for the & # 39; Canada in a sweet spot & # 39; story. "- Twitter
Diversion:" With this DNA dating app, you can swallow your love "(]