“Getting back to a normal market is going to take a long time,” he warned. “Don’t think that everyone’s going to have their vaccine and the market is going to be operating the same way as before COVID-19. It’s not going to.”
Canadian consumer confidence is at its highest level since January 2018 amid a buoyant housing market and positive news on the vaccination front. Still, Hugh believes that overoptimism remains a risk, particularly with an end to the Canada Emergency Response Benefits (CERB) program in sight.
“When that stops, I think that’s going to really impact Canadians,” he said. “Right now, I believe there’s a false sense of security by Canadians making their mortgage payments, because they [may be] getting their CERB payments and using that to pay their mortgages. What happens when those payments stop for Canadians? I don’t think the liquidity issue is [over] for Canadians.”