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J.C. Parets Market Technician of All Star Charts makes the point that global money flow since the beginning of the year has been into Japan and the U.S. while Canada and other markets are being drained.
Commodity markets began rolling over in the spring of 2011 and as you can see by the CMHC Housing Index inset, Canadian housing values peaked in the spring of 2012. Now in the spring of 2013 we can see the U.S. and Japanese markets topping.
J.C. Parets asks: "Will there be a rotation back into resource heavy economies?".
A return to the commodity bull and continuing low interest rates will probably keep the Canadian housing sector spirits alive. But if commodity prices keep falling, a cascade of events will keep the under performers under performing.
History, Charts & Curated Readings
"History, real solemn history, I cannot be interested in.... I read it a little as a duty; but it tells me nothing that does not either vex or weary me. The quarrels of popes and kings, with wars and pestilences in every page; the men all so good for nothing, and hardly any women at all - it is very tiresome." Jane Austen spoken by Catherine Morland in 'Northanger Abbey'
"Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement; and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it." George Santayana Vol. I, Reason in Common Sense