Today we take a look back at the LiteHedge 2018 predictions and share our take on what we expect to happen in the second half of 2019 leading into the year 2020, where President Trump is hoping to secure a second term (likely), bitcoin analysts forecast prices to hit $100,000$1,000,000 (unlikely) and we celebrate 2 decades since the infamous Y2K scare (who else fell for that?).

Asset prices have long been propped up by easy access to credit and historically low interest rates. Some might argue that it is foreigners that are fueling the various bubbles and rightfully…


It wasn’t long ago when there was free-flowing credit fueling a rampant real estate market.

We are now starting to see the impacts of artificially inflated assets as sales activity continues to remain sluggish despite ‘record low’ interest rates and ‘thriving’ economies.

You’ve probably heard that the RBNZ recently cut the official interest rates for the first time since November 2016 from 1.75% to 1.50% and the RBA will most likely follow at some point:


Seeing an increase in the rate of home ownership is great, but when it is fueled by access to easy credit and ‘experts’ using flawed supply and demand arguments to create FOMO, people will end up losing.

Unpopular opinion: There are plenty of people boasting about over extending themselves to build a real estate portfolio and flipping houses like a penny stock. The truth is, for many people who have capitalized on one of the largest housing bubbles in history, it has been more about luck than skills. …


Not this:

Jokes aside, despite still experiencing record low interest rates, the Vancouver housing market has lost momentum with sales falling almost 50% below the 10-year average last month, the lowest total for the month since 1986. Ashley Smith, REBGV president, suggests that this is due to the governments imposing new taxes and borrowing requirements for prospective home buyers.

This has massive implications for the economy, considering the real estate, construction, financial and insurance industries make up for more than 20% of Canada’s GDP.


According to a report from the Australian, almost 50% of new units in Sydney and Melbourne which settled last month are now worth LESS than what they were purchased for.

It is not surprising why people were so bullish on housing in Australia, given that the last recession was in 1991. Despite the recent fall in house prices and change in sentiment, there is a huge pipeline of supply still being constructed today, posing major settlement risks for both the purchasers, developers and the financial institutions that provide the funding.

Australia’s banking sector is a huge part of its economy…


Have you ever had a task you’ve been dreading, whether it be a school project or a deal at work that you had been sitting on for a few days, but then once you got started working on it, and often found that getting started was the most difficult part?

The Zeigarnik effect implies that we are inclined to finishing a task once it becomes embedded into our memories. The hardest part about procrastination is usually getting started.

Think of a video game where you have to complete stages to proceed to the next level, your brain’s automated system sends…


Remember picking up a newspaper or scrolling through your news feed a year ago and all you ever heard about was the constant rise in house prices throughout ‘the most livable cities in the world’?


Saving for your first home, an early retirement or even that holiday you’ve been dreaming of doesn’t need to be as daunting.

Here are our top saving tips to make saving a habit so that you can achieve your goals:

  1. Know Your Spending (KYS)

You’ve probably heard of calorie counting? Whether you believe it works or not is irrelevant, but the fundamentals are similar and can be applied financially:

The less money you take out of your account, the more your savings can potentially grow…

https://media.giphy.com/media/l3q2K5jinAlChoCLS/giphy.gif

In the banking world, we’re taught to follow a procedure called KYC or ‘know…


LiteHedge’s predictions for 2019 has taken an interesting turn in the recent weeks (see original article here)— let’s recap:

Higher interest rates:

The Bank of Canada raised its benchmark interest rate by 25bps to 1.75 percent on October 24th 2018 from 1.5 percent, as widely expected.


Okay maybe four charts.

As expected, the Bank of Canada (BoC) has raised interest rates to 1.75%, off the back of lower concerns of household debt, trade prospects and positive economic outlook.

“The outlook for global economic growth remains solid.. Output is expected to grow at about 2 per cent over the second half of 2018”

The central bank has hinted at more future rises, which is crippling for the housing market.

Over the past two years, credit has tightened for new mortgage lending. …

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