Here’s a closer look at why a reputed bear has turned bullish on Canada:stems from just how vulnerable it is to higher interest rates,” said Rosenberg.
After taking a break during the pandemic, Canadians continued to add to their debt and now carry a debt to disposable income ratio of 168.1 per cent, near an all-time high. By comparison, U.S. consumers are considerably less in the hole with a debt to disposable income ratio of 96.4 per cent, well off a peak of 129.4 per cent during the Great Recession.Article content
“With debt payments making up an increasingly large chunk of income, this means less available for consumer spending ,” Rosenberg wrote. On the trade front, exports accounted for 34 per cent of Canada’s GDP exposing the economy to the rising risks of a global slowdown.All this might sound alarming, but there are several upsides percolating for investors looking to take advantage of lower Canadian stock prices.
Honestly, do the opposite of what this guy says and you'll be making strong investments.
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