Quote:
Originally Posted by jasonturbo
Nearly all asset classes are currently inflated IMO, the only exception being bonds, the bond market is going to fucking EXPLODE at the first real sign of economic turmoil.
There will be many deals to be had on Porsches and houses, I think I'll buy both. Maybe Vancouver is super duper special and won't be impacted, and that's okay, I'll just buy something in Palm Springs CA to get my retirement wheels in motion.
Vancouver RE is race horse, ride your winning horse as hard as you can, once he gets hurt nobody wants him, you send him to the glue factory.
|
all classes are inflated due to the volume of cheap and easy money. bonds are no different.
in europe, people are buying negative rate bonds for the same reason people in vancouver are buying real estate - the expectation of continued capital appreciation.
at some point, over a long period of time, we will have to normalize. this will hit living standards (because we will have to work for what we have rather than just buying it on credit)
at some point the bond market will slowly implode. equity returns will be lower than they have been historically, in many markets real estate will implode. we don't have enough inflation in the developed world through demand, only through money supply - this is a massive problem.
just stay diversified, equities, bonds, real estate, gold (in good allocations) - you can't lose with this as you will always buy low, sell high