Posted by linkadge on March 20, 2012, at 18:18:48
In reply to Re: The 'big one' is coming, posted by sigismund on March 19, 2012, at 23:01:11
>QE is going to lead to inflation down the track, >so interest rates will have to be jacked up so >foreclosures will increase leading to downward >pressure on real estate.
I'm not sure what the goal is for QE this time around (at least in Canada), but yeah. In Canada, the real estate picture is not great. Interest rates will have to rise some time. I would (personally) not invest in real estate right now. Low mortage rates are just one part of the picture. When interest rates rise, people will forclose, opening the door to a better prices on housing.
For me, I think the case for renting will get stronger. More retirees looking for houses to rent out for additional income.
Of course, where you live is an important factor.
>Similar effect on shares.
Yes, people are optimistic about the sucessful "greek bailout", but this is shortsighted. The US and Europe have big dept problems. With interest rates low, people are very tempted to turn to the markets *and* invest on margin. But, the market moves in the way that hurts the most people. The debt woes of Greece and the US will resurface at a time when the markets are high. Or there will be another catalyst (i.e. high oil) that causes fears of enduring or returning ressession.
Right now, I'd keep a good chunk in cash. There will be a better time for GIC's, Bonds or Equitites fairly soon.
>Then there is the oil price.
>Like 70s stagflation?Yes, very much like the 70's. Actually the chart for the 70's looks a lot like 2000's.
>I wouldn't feel too bad about buying US real >estate, if only because I bought shares in 2006 >or so. You can't go *that* wrong, can you?
What form of real estate did you invest in?
poster:linkadge
thread:1013397
URL: http://www.dr-bob.org/babble/social/20120312/msgs/1013509.html