. When readers of the Carrick on Money newsletter were recently asked about the overall best place to invest, just 1.7 per cent of the 1,986 participants selected. A diversified portfolio of stocks and bonds was chosen by 61 per cent, while all-stocks portfolio was picked by 30 per cent.
. Survey participants were asked about what investment produced the worst results for them and real estate was the fourth-ranked choice at close to 7 per cent. Bonds have been a sharp disappointment because they lost money in two of the three past years, a shocking result from an asset that’s expected to add stability to investment portfolios. Real estate has had some issues as well in the past 24 months.
Looking ahead, multiple uncertainties weigh on the housing market. How far will mortgage rates fall? How will immigration affect demand? Will governments deliver on promises to jolt new home construction? One thing we know for sure, and this applies as much to bonds as housing, is that distress equals a buying opportunity.