HEWC - 'The Big Short' Eisman Betting On Losses In Canadian Bank Shares
Canadian financial shares make up 38% of the market cap of dividend-paying stocks in the broader TSX composite, which most Canadian equity funds, managers and pensions are benchmarking. Lower credit-cycle exposure in the last two bear markets resulted in 40% and 55% losses (2000-02 and 2008-09) for Canadian bank shares, and the overall Canadian market followed them lower in lockstep. All the yield-seeking people who have moved into Canadian dividend-paying "growth and income" funds and ETFs in recent years are heavily exposed to the credit normalization cycle coming. This will be very hard on those