Ric
Active Member
Does anyone know of an ETF that shorts the Canadian RE Market? With rates expected to go up later this year, I think it a good time to ride the bursting bubble on it's way down.
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Shorting the Canadian RE Market
- Thread starter Ric
- Start date
digitalis
Active Member
Ric,
I'm not aware of any ETFs that are short the Canadian Real Estate market, but if you are looking to do it through ETF's, you could try shorting XRE (iShares). That would give you a broad exposure across many different real estate classes. You'll have to see if your broker has any inventory available to short however. Also, keep in mind it pays a dividend of approximately 5.5% as of today.
I'm not aware of any ETFs that are short the Canadian Real Estate market, but if you are looking to do it through ETF's, you could try shorting XRE (iShares). That would give you a broad exposure across many different real estate classes. You'll have to see if your broker has any inventory available to short however. Also, keep in mind it pays a dividend of approximately 5.5% as of today.
Johnzz
Active Member
We’re likely to experience the greatest inflationary period since the 70’s and you're looking to "short sell" a physical asset? 
For your sake I hope you're joking.
For your sake I hope you're joking.
Ric
Active Member
We’re likely to experience the greatest inflationary period since the 70’s and you're looking to "short sell" a physical asset?
For your sake I hope you're joking.
No Johnzz, I'm not joking, I hate following the Herd. Lets see how many of us who bought houses for $500K @ 2.2% variable interest can hold on to them when interest rates rise to a modest 4-6%. I'm willing to jump at this great short trade opportunity.
Johnzz, Lets hope I'm wrong and you can laugh at me in 2 years.
Ric
Active Member
Thanks for the info. I'll check it out.
ponyboy
Active Member
I would also like to short Canadian real estate, but the XRE exchange trade fund (ETF) is a bundle of REITs, which includes many large multi-residential and commercial rental properties. The stock prices of these companies have already been severely punished by investors since 2008. What has continued to inflate is single unit residential properties because of the plentiful money supply for that sector. I'd rather somehow short the price/value of owner-occupied real estate, but I'm pretty sure there isn't a way to do that. You could bet against the banks because they supply the mortgages that will be under stress should there be a major bubble burst, but because of the CMHC insurance provision, the Banks may not be on the hook for too much. If only we could short the Canadian government's financial outlook...
Johnzz
Active Member
Have you looked at the deficit/debt levels in Japan, U.S., U.K., and Europe for example? These are all ticking debt bombs.
Canada's financial outlook is actually quite rosy when viewed in a global context.
CN Tower
Banned
Canada will have a record $56 billion deficit this year. If the hurricane destroyed your neighbor's house and leveled everything but your empty tool shed you probably wouldn't be celebrating. We will all go down together.
The best way to short housing in Canada (c'mon Shiller, where are you man?!) is first to sell your primary residence if you have one. Second, I would short any of the smaller lenders and trust companies. They won't be bailed out in the next round.
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urbandreamer
recession proof
Short the Canadian dollar.
steve_toronto
New Member
It is not too bad comparing to 1.75 trillion deficit in US for 2009, and 1.17 trillion in 2010.
interested
Senior Member
I am perplexed that people would "gamble" like this. If you are right, you can make money. But sell your principal residence as was suggested above. At least your downside risk is limited to that. If you short bank stocks or reits, be prepared to cover them off including the dividend payments. It is hard to go against the hoard mentality and one better have staying power and ability to meet margin calls as if you guess wrong, you may have to cover the bet.
If the banks go in Canada, you will have alot of other problems. Like a significantly devalued Canadian dollar. Are you going to invest in foreign currencies as well or buy gold. One thing is sure in a disaster, you will become very wealthy, or get wiped out. For most of us, we would not be too inclined to play that game. If one does this, I hope they do it with a small amount of money they can afford to lose, and not open ended "short selling". But then, I am too conservative but I find it easier to talk about what I did not make than what I actually lost. Most people's risk tolerance rapidly dissipates in the face of real monetary losses.
If the banks go in Canada, you will have alot of other problems. Like a significantly devalued Canadian dollar. Are you going to invest in foreign currencies as well or buy gold. One thing is sure in a disaster, you will become very wealthy, or get wiped out. For most of us, we would not be too inclined to play that game. If one does this, I hope they do it with a small amount of money they can afford to lose, and not open ended "short selling". But then, I am too conservative but I find it easier to talk about what I did not make than what I actually lost. Most people's risk tolerance rapidly dissipates in the face of real monetary losses.
jade_lee
Active Member
urbandreamer
recession proof
^No.
But they may be when they're starving for customers.
But they may be when they're starving for customers.
cityboy
Active Member
The most direct way to short canadian real estate would be to find a publicly traded canadian home or condo developer and sell short their shares. Having said this, I am not aware of any publicly traded developer. Most are small regional players.
realET
New Member
Is XRE just residential real estate or is there commercial real estate lumped in there as well?