Two major events occurred today.
1. I’ve completed one of the major project I have going today and
2. Today marked the beginning of Canada’s Real Estate Collapse with Home Capital Group (HCG.to) falling 60% due to some shit that hit the fan.
For me, #1 is the most important thing as it relieved me of a major source of stress. For the rest of the world. #2 is more important. So let’s go into that a bit.
As those of you from Tesla already knew, my 8 ball and crystal balls have been deployed in two different projects so I’ve had no time to spare on Tesla. The shorter term 8 ball is deployed in Canada’s real estate while the longer term Crystal ball best suited for detecting sentiment and the beginning of a trend is deployed in yet another secret related to #1.
For me to come out and tell you that 8 ball’s job was on Canada’s Real Estate sector would mean that I’ve already positioned myself to benefit from the downfall. The almost collapse of Home capital group is testament to what my predictions are. I expect things to get a lot worse and that the government will have to somehow find $150 billion in order to plug the hole.
You see, while the Americans have been deleveraging and repairing from the housing market in 2008 all that we did as Canadians was leverage up and double down on housing. The full research and reasoning can make for a good 10 000 word essay, but who’s paying me to actually type it out? Yep, nobody. So it’ll just stay in my mind to benefit me.
By benefit, I don’t mean I am actively participating in the destruction of the housing market. I did not enter any major short or anything. Just one or two position so that it is marked on my statement that I called it. What I meant is that I’ve completely withdrawn from the Canadian market to wait it out and I will enter again once the destruction is done in order to help with the reconstruction effort.
I strongly recommend going through the detailed event log that I meticulously jogged down starting in 2007 to see the series of events that might happen in the coming years. Here is the link: http://www.alongside.me/2010/financial-collapse-through-my-eyes/
For those of you who will be impacted by this negatively. Remember, this too shall pass.