Recently the Huffington Post (Business Canada) reported on what a potential housing "correction" will do to the Canadian psyche. It highlighted the "contrarian economic perspective" between the Bank of Canada and Capital Economics.
It showed how the "unbiased" experts couldn’t seem to agree on the economic direction that our country is going to take. If they can't come to a consensus, how is the average Canadian who tries to figure things out while juggling full-time work and family, going to make heads or tails of the news report?
Interestingly, the article also highlighted a problem with getting the information we need to make the best decisions for our future. With so much information at our fingertips, it would seem that it would make the economic future clearer.
Instead, with experts disagreeing so diametrically; with so much of our media, both social and conventional, being more editorial in nature and disguising itself as fact; with so much of the news needing to both inform while being entertaining; who is the average person to believe?
Do you believe the Bank of Canada in its view of a "soft-landing", Capital Economic's view of a "hard crash" coming, or maybe The Voice out of the U.S. who says Canadians are living the America Dream of economic prosperity and cites many studies showing our economy is strong, with no end in sight?
After reading these three articles and others, one thing became obvious - Canada is too diverse to be brush-stroked with such broad statements about where we are going economically.
While the Lower Mainland in B.C. may experience negative growth in housing, St. John's is expected to fully recover. While Quebec is being "dragged down" according to Canadian Manufacturing, Calgary is seeing 6%+ growth in residential rates. No wonder 'Joe Public' is confused - the experts can't agree.
Who’s right? Who’s wrong? Be careful to not overreact based on any one expert!