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Canada’s best dividend stocks
Housing prices in Canada might drop
We don’t think housing prices are going to fall in 2025, but we are questioning if they could rise by 6.6% as Canadian Real Estate Association (CREA) has forecasted.
With 5-year bond and 10-year bond rates not falling as quickly as the Bank of Canada’s (BoC) key lending rate is dropping, fixed rate mortgages may go as low as home buyers hope. With decreased immigration targets and negative overall consumer sentiment, home buyers should continue to have more leverage than sellers in the major markets. This is especially true for the glut of condos currently for sale on the market.
Oil will stay below USD$75 a barrel
“Drill baby drill” was heard along the U.S. election campaign trail in 2024. With the volume of American oil exports rising over the past few years, it will be interesting to see if the countries part of OPEC (Organization of the Petroleum Exporting Countries) would be willing to reduce supply in order to keep prices up. At some point those countries are going to get sick of a shrinking market share and cutting overall government revenues. Should that happen, supply might quickly overtake demand, as oil inventories around the world are already pretty full.
With growth in China showing no signs of getting back to its former oil-needing glory, we don’t see where increased demand is going to come from to soak up all the extra oil the world is ready to pull out of the ground.
BYD will lengthen lead over Tesla
Last year, we forecasted that Tesla’s declining profit margins could start to catch up with the aggressive valuation of its stock price. We didn’t foresee, though, Tesla CEO Elon Musk becoming a key cog in the Trump machine.
No matter how much Musk has the ear of the new president, it may not be enough to shield Tesla from the EV competition outside of North America. With Musk now splitting time not only between his various corporate roles, but also as head of the new “Department of Government Efficiency” (DOGE), his eye is pretty far off the ball—it’s fair to say. It looks like he’s doing his best to quash the enviable reputation Tesla enjoyed among eco-conscious consumers. Add on to that that the U.S. government may be cutting subsidies to EV buyers. Tesla could see tough times, no matter what.
However, that doesn’t even account for the corporate freight train headed its way. Build Your Own Dreams (BYD) is one of the most interesting companies in the world. It’s emerged from the intense inner-China competition for the EV market as a lean, mean, electric machine. Toss in BYD investor Warren Buffett’s money, influence and connections, and it didn’t surprise us that BYD recently stated that one out of every five EVs sold in the world today is made by BYD.
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