Adriaan Schipper

·         Oct 7 2008 IMF predicts Canada will lead the G7 countries in growth at 1.2% in 2009.

·         Canada has 18 domestic banks, the US has 8000,

·         Oct 9 2008 Prestigious World Economic Forum declares Canada has the soundest banking system in the world out of 134 countries, US ranked 44^th.

·         There are an estimated 2 million lakes in Canada covering approximately 7.6% of Canada's land area. Canada has more fresh water lake area than any other country in the world.

·         Canada has 1/3 the world’s potash production, and more than 50% of the world’s potash reserves; both are greater than any other nation.

·         30-9-08 BC’s Employment rate is 95.4%, text book perfect!

·         30-9-08 BC’s Consumer Price Index is 1.9%

·         Residential building permits in BC for 2002 were $2.8 billion, and finished 2007 at $8.6 billion, a 271% increase, and 2002 was a great year!

·         BC Commercial building permits in 2002 were $1.1 billion and for 2007 $2.6 billion

·         YVR Airport Authority generated a profit of 21% in 2007 and its airport is ranked as one of the best airports in the world.

·         YVR Airport Services now provides services in airports in 7 countries handling over 49 million passengers annually, and generates a double digit profit.

·         US home existing home sales rose 1.4% in September v September 07, the first time since November 95 year over year sales for a month showed an increase

·         GE costs will drop 28% in 2009, yielding its most significant competitive pricing advantage ever

·         OPEC decided to cut production by 2%, the largest single decline in over 8 years, 8 years ago was when the healthy economic conditions began

·         RBC Wealth Management analysis of North American stock market history

·         12 bear markets 1956-2000, average duration 13 months, median 9 months, average decline 28% ,median decline 22%

 ·         9 reasons Canadian banks will come out ahead:

1.      By law shares of large, publicly traded banks and insurance companies must be “widely held” which in effect prevents domestic mergers or foreign take-over’s unless supported by the federal finance minster;

2.      Canadian banks were the 1^st in the world to adopt new risk-management rules under Base1 and 11 capital framework

3.      Canadian Bank Act requires mortgage default insurance on loans there equity is less than 20%

4.      Canadian mortgage payments in arrears in July 2008 were running at historic lows…less than 1/3 of 1%....about 1/6 of what the US experienced in the depths of its 1990’s housing slump

5.      Canadian banks approvals of “non prime” mortgages runs at about 5% v the US at 23% inn 2008

6.      In Canada the Office of Superintendant of Financial Institutions oversees both commercial and investment banking, in the US only commercial banking has been regulated to the same degree

7.      No US bank has branches in all 50 states v all 5 major Canadian banks have branches in all 10 provinces thereby diversifying the risk geographically

8.      Canadian Office of Superintendant of Financial Institutions requires chartered banks maintain a minimum Tier 1 capital ratio  of 7%, in the US the minimum is 6%;

9.      In the latest quarter, the actual rate Tier 1 capital ratio for Canadian banks was 9.8%...63% above the required minimum

·         The loony’s tumble in last week of October served up a 15% advantage for Americans buying Canadian real estate.

·         The loony’s gain of 3.67 cents against the U.S. dollar October 30 was the largest one-day gain in the era of floating exchange rates.

·         Average home sale prices in 2002 were $250,000 and $453,000 in 2008, a mere 81% increase. Even with a BCREA forecast of $413,000 in 2009, the appreciation since 2002 would be just 65% over 7 years.

·         On Tuesday October 28, for the 1^st time in 5 weeks the stock markets in Europe, the Americas, and Asia were flat versus consistently heading down at different velocities.

·         On Wednesday October 29 stock markets on all 3 continents moved up marginally.

·         On Thursday October 31 on all 3 continents stock markets flattened, indicating a more rational step by step trend to recovery.

·         Thursday October 31, the price of oil is approximately 58% of its peak price of $147/bbl in June.

·         In Canada 77,000 agents sold $30 billion worth of real estate during the height of the previous boom, in 1987, compared with 95,000 agents selling $160 billion today.

·         In BC in 2008 it is estimated real estate industry fees and commissions earned will exceed 3 billion….3 billion…. dollars.

·         Consumers in BC today have real estate needs, jobs to pay for their mortgages, and financing available; they just need some confidence. It’s our job to deliver that confidence.

·         BC now has the lowest provincial personal tax rate of any province in Canada. Provincial corporate tax rates are 1/3 less today than in 2001.

·         Provincial government investment in education has grown 30% in the past 7 years, and investment in health care has risen 60% in the same period.

·         Today BC has 33000 more university seats than in 2001.

·         In 2001 major construction projects inventory in the province was 46 billion dollars, for 19 consecutive quarters that number has increased, today the number is over 100 billion dollars, adjusted for this month’s economic downturn.

·         Out of all Canadian provinces, BC is least dependant on the US market.

·         Mining drilling rights sold in BC this year in the first 6 months of 2008 doubled the previous ANNUAL record.

·         Technology employment in BC is growing faster than in any other sector in the province.

·         The largest television audience in history, 3 billion people will watch the Vancouver Whistler Winter Olympics in 2010.

 ·         A new RBC study conducted during the market turmoil in October finds Canadians overall have intentions to purchase a home in the next two years remain steady at 22 per cent and have not changed since January 2008. As well, renovation intentions are slightly higher than last year – up four percentage points as

·         70 per cent of respondents are planning to renovate or make home improvements in the next two years.

·         “Be fearful when others are greedy, and greedy when others are fearful”….Warren Buffet’s principal investment strategy.

·         Warren Buffet with a net worth of $52 billion today gave away $46 billion between 2002 and 2006

·         Warren Buffet committed $8 billion to investments in US companies in 2008 to October 15^th.

·         The return of following Buffet’s investment strategy for the 31 years ending 2007 is 25% per annum. On a single day in early October he made $843,000,000 appreciation on his most recent stock investments; and his core investment timeline is “I buy for the long term”. Warren Buffet is 78 years old!

·         “Buy real estate and wait, don’t wait and buy real estate”

If not now, when?

If not you, who?