Stocks vs real estate


#101

Basically means leveraging beyond a certain point is not possible under current lending guidelines. Only way to do that in the future is if price appreciation continues in double digits(i.e. investors can use the growth equity for additional leverage) OR if flippers get “to be remodeled” houses at bargain prices.

Not sure if price growth at double digits can sustain in Bay area in near future.


#102

It is true that price growth can not go spirally up always.As long as stocks are going up, people are bidding/buying with higher prices like the way hanera pointed out.

We may end up a recession or correction and the impact will be seen, but again recovery comes.

The correction period is shorter (and sharper) than recovery (Gradual) period

Over a long term, prices of all assets (stock or real estate) goes up by inflation.This is the main reason, if someone buys a home at any market price, they stand to gain after 10 years or 20 years at 5% YOY basis.


#103

True for real estate only. Local conditions might vary.


#105

Stocks too. Both are hedges against inflation.


#106

Stocks(S&P 500) long term are higher than inflation.
RE match it. Of course, Bay area might be different in the recent 20-30 years i.e. RE higher than inflation.


#107

If all cash and high cash offers are the norms, we are far, far away from the top. A big potential boost is the repeal or watering-down of Dodd Frank. If Trump played a bit less golf, maybe he can at least get this much done?

Ninja loans, baby!


#108
  1. ACA is hard for Trump
  2. Dodd-Frank is hard for Trump
  3. Tax changes, like he said, are hard for Trump

He has set his goal very high, let us see which one he successfully completes !


#109

I think none. Trump cares more about golf and chocolate cakes than anything else…

The stock market may be waking up finally. Nothing Trump promised will come to fruition, well, except maybe the wall, which we taxpayers are paying for. And his loose talk about North Korea is scaring people.


#110

The stock market “might” keep on going up in the near future, but just like the shi**y economy & stock market during Obama’s first term was not due to him, current & near term good performance of the economy & stock market is not due to Trump.


#111

Yes, the stocks are getting down with the pressure of rate hikes. Stock will sag some months and then slowly go up.FED does not raise rates when stocks are going down, they time the stock market. When it is up another DOW 1000 points, FED will raise another hike. This may take around 4-6 months.


#112

:wink: You seem to have a secret phone line to Janet Yellen :slight_smile:


#113

Just saw this timely article…


#114

The stock market behaves like real life… Only 1% of the stockpickers win it all. 99% will fail.

In real life, we have the top 1% and the bottom 99%.


#115

Even if only 1% wins and 99% loses, 99% of the people will say they belong in the 1%. :wink:


#116

Ha Ha Ha ! Just noticed this during 2000-2001 and 2006-2008 ! They were doing the same last 3 hikes ! I am able to clearly identify whether they hike or not last three times !!!


#117

You sure, Janet Yellen is not on this forum? :slight_smile:


#118

Aaaah, I was wondering who the user @FedBigMama was…:slight_smile:


#119

Most of what Trump promised is coming to fruition. Look at this appointments, not at what Congress does. The relevance of Congress pales compared to EPA, Labor, Interior, HHS, Energy, etc. It has been that way for decades now.


#120

Most of the winners in the stock market don’t try to pick stocks at all.


#121

These will melt away when the next president comes in. The only way to make lasting changes is thru legislation, and that means Congress.

It looks more and more to me Trump is the Right’s Carter. Full of contradictions with their parties’ orthodox views. Like Carter, Trump will accomplish very little domestically.