invite response« First « Previous Comments 77 - 80 of 80 Search these comments
78
anonymous
2018 Feb 15, 10:14am
ThreeBays says
Yup, the 5 to 1 leverage is a huge difference maker vs investing in stocks 1:1 and renting - this difference is astounding given a typical human lifetime and productive years.
Speaking of sad wives, I think divorces are much more likely if stock investing tanks especially if a house could have been purchased as an alternative choice. With house, there's something concrete, with stocks, you are a virtual shareholder!
House buyers are usually using 5:1 leverage so their appreciation could be much larger compared to unleveraged stock ownership. Of course, the same can apply in reverse - hence people being under water in 2018, and with sad wives.
Yup, the 5 to 1 leverage is a huge difference maker vs investing in stocks 1:1 and renting - this difference is astounding given a typical human lifetime and productive years.
Speaking of sad wives, I think divorces are much more likely if stock investing tanks especially if a house could have been purchased as an alternative choice. With house, there's something concrete, with stocks, you are a virtual shareholder!
79
anonymous
2018 Feb 15, 10:14am
Patrick says
Sorry, must not have been clear. You stated that high interest rates may cause prices to tumble. That's what I was saying hasn't happened in the past.
Of course prices have fallen in the past--typically during recessions, when incomes fall.
What? The value of equity in US housing has most definitely fallen in the past, and dramatically so:
Sorry, must not have been clear. You stated that high interest rates may cause prices to tumble. That's what I was saying hasn't happened in the past.
Of course prices have fallen in the past--typically during recessions, when incomes fall.
80
HappyGilmore
2018 Feb 16, 8:36am
This graph shows the much stronger correlation between income growth and housing prices:
« First « Previous Comments 77 - 80 of 80 Search these comments
The Consumer Price Index, a key indicator of inflation trends, jumped 0.5 percent in January, well above market expectations.
Markets reacted sharply to the news, with stocks sliding and government bond yields rising.
The Fed is watching inflation closely, so the report could add fuel to interest rate hikes.
https://www.cnbc.com/2018/02/14/us-consumer-price-index-jan-2018.html
Fantastic News! The best help to debtors is some decent inflation. No more wimpy inflation to pad the wallets of the banks and lenders.