My investment thesis is that Canadian residential real estate in major metro areas is grossly overvalued to the point of being in a bubble. I believe this bubble will burst in the next 3 years.
Assuming the bubble bursts in the next 3 years and assuming we see maybe a 30% drop in residential real estate prices which stocks/sector will be the best to short?
I see home capital which has sold off a lot recently (my view is that it is the canary in the coal mine) and that one looks like a possible short in my book. It will probably go into bankruptcy at some point.
All I can see is banks with lots of residential mortgage exposure and possibly local home builders.
Any other sectors worth looking at?
Submitted May 19, 2017 at 03:23AM by TexasSteve3452345 http://ift.tt/2qzYObI
