On April 8, stock market anxiety hit an extreme that's seldom been equalled.
Wall Street's VIX (a.k.a. "fear index") spiked above 52, the highest on record apart from the #GFC# (2008-09) and pandemic (2020).
Yet here we are, a mere 12 weeks later, watching the S&P 500 smash record highs. It's like nothing happened. But, in fact, it's one of the fastest recoveries from a 20% drop in S&P 500 history.
Ok, but what does this have to do with mortgages?
Glad you asked.
What happened this spring is a textbook example of how qualified, savvy, well-prepared investors use credit to manufacture wealth.
Credit is liquidity, and liquidity is power. Pre-arranged financing (e.g., a HELOC) gives Canadians the option to leverage a dead asset, home equity, to boost net worth the instant that opportunity strikes.
Now, what you're about to read is not a playbook for the masses (check the disclaimer), but for a rare breed with a long time horizon, strong financials and market conviction, it deserves serious thought.
