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Joe Stocks

05/11/03 8:57 PM

#106592 RE: Sam_0 #106588

>>How do you see Real Estate aligning with this stock decline?<<<

I think Real estate is in a bubble right now. Sure we are not going to see 75% declines like the stock bubble but 20% declines will be just as much and even more painful to the economy.

Longer term? The boomers got 80 mil in their generation. The generation before the boomers was just 45 mil. So, you have 80 mil buying up and acquiring the real esate of the 45 mil. Huge demand with limited supply = much higher prices.

The generation after the boomers is only 70 mil. 70 mil chasing after the real property assets of 80 mil. Big supply, smaller demand = lower prices. Right now we are trading off lower interest rates for higher prices. Interest rates will not go much lower in my opinion. With demographics and low interest rates arguing against higher real property prices my bet is that real estate in general is a poor investment at the moment.

The above scenario of supply and demand can be factored into not only real estate but about anything tangible from beanie babies to antiques. Big problems ahead for the US. You can count on it.

Joe