It’s obvious there were many benefits for Canada in the recent
commodity boom. But as history shows, such increases can’t go on
forever: every bubble has to burst some day.
In the same time, the Bank of Canada Governor, Mark Carney, doesn’t think so.
In
his latest speech in Calgary Mark Carney said this time it’s going to
be different due to the rise of the middle class in India and China.
The previous 200 years showed the following tendency: if 10-year average rates of return rise to 10%, it gets into the danger zone. And according to Hackett Financial Advisors, just a few weeks ago we saw 12%.
Mark Carney says this time it’s a “supercycle”, that’s why the old rules don’t work anymore. Meanwhile, his colleague at the Bank, Deputy Governor, John Murray doesn’t agree with such forecasts. Last year he didn’t agree either: “If history is a guide, such rapid and continuous price hikes can’t go on forever”.
Mark Carney says the commodity boom will go on
It’s obvious there were many benefits for Canada in the recent commodity boom. But as history shows, such increases can’t go on forever: every bubble has to burst some day.
In the same time, the Bank of Canada Governor, Mark Carney, doesn’t think so.
In his latest speech in Calgary Mark Carney said this time it’s going to be different due to the rise of the middle class in India and China.
The previous 200 years showed the following tendency: if 10-year average rates of return rise to 10%, it gets into the danger zone. And according to Hackett Financial Advisors, just a few weeks ago we saw 12%.
Mark Carney says this time it’s a “supercycle”, that’s why the old rules don’t work anymore. Meanwhile, his colleague at the Bank, Deputy Governor, John Murray doesn’t agree with such forecasts. Last year he didn’t agree either: “If history is a guide, such rapid and continuous price hikes can’t go on forever”.
