And I’m just being pragmatic too. If signs point to a major correction/crash, it is good to accept that and plan for it. Seems like we agree that inflation is out of control and that is not a good thing for the general populace. The only way this inflation is going to get under control is a crash of the current asset bubble. Looks fairly certain that the Fed is going to engineer this crash of the bubble they created.[/quote]
One should consider what happened in the past when inflation was high and observe the impacts on real estate. Consider the decade from ~1972 -1984 which was one of the most significant periods of higher than post-WW2 average inflation.
What happened to home prices during that period ?
Inflation was ultImately tamed through fiscal and monetary policy changes (and perhaps demographic changes) and this period included three recessionary periods.
But what about home prices? Did the asset bubble burst in the correction or was real estate an effective way to survive that inflationary era ?
Median US home price January 1972 = 26,900
Median US home price January 1984 = 65,341
These are nominal dollars. In inflation adjusted terms home prices pretty much tracked inflation.
