Financial Advisor: “I have lost business because of my bearish position on the subject of Canadian real estate.”

These excerpts from an e-mail that a financial advisor from either Alberta or BC sent to Garth Turner, as quoted on greaterfool.ca 17 Jan 2010

“In my profession I have always fielded questions from anyone I talk to regarding whether or not real estate is a good investment. I think, lately, they are just asking to get affirmation instead of a real answer.  Regardless, my recent responses are being universally poorly received. I will be the first to acknowledge that anecdotal evidence isn’t, but I have come to feel from my experience with the Canadian populace that I am fighting a battle [using] common sense and losing. I have yet to see the light at the end of the tunnel. I fear it will come only once the dust settles. And then, as always, only for a time. Amusingly, I have even lost business because of my position on the subject of Canadian real estate. The moment I realized that my view was affecting my career came as a shock to me, so much so that for about three long seconds I considered that maybe it wasn’t in my best interest to tell the truth. Too bad for my pay-cheque that I consider my job to be that of providing impartial and unbiased (as much as humanly possible) investment advice that is in the client’s best interest. I have been bearish about real estate in Canada since my wife and I sold our townhouse in 2007. After three years of moving twice a year and watching our friends buy property literally like it’s going out of style, even my wife is asking the question, “What if we are wrong?”

In response to the above, junius comments 17 Jan 2010 9:42pm – “I know that feeling living here in Vancouver. Being a Real Estate Bear is a very dangerous position to take. It stresses friendships and family in ways few non-moral or political issues do.”

One response to “Financial Advisor: “I have lost business because of my bearish position on the subject of Canadian real estate.”

  1. I am tired of telling my friends time and again that Vancouver RE is a bubble. I have been proven wrong every time the numbers come out.

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