As the market rises, it also has the potential to crash, meaning that if investors’ returns were tied to the performance of the markets, there would so be the potential of them losing returns when the music stops. Taking a look at the history of Canada’s economy, especially in growing and mega cities (such as Toronto), one can see that even during the worst of economic times and world recessions, these cities did not suffer as much and continued to grow, or at the very least did not take a negative hit and experience a full-on recession.
This is in contrast to many other large economies, including the United States, U.A.E., Portugal, and more recently Greece. The Canadian economic and banking policies have always been set up in such a way so as to manage and mitigate risks efficiently. Coupled with the strict policies and controls enforced in the real-estate sector, the overall risk in investing into the Canadian market is very low.
