perhaps a better way of looking at the issue is to ask the question what is the “investment” alternative (given the big picture)
…when I mention big picture I’m thinking about over all debt level, what is the demographic trends, what are politicians thinking, what is the press reporting, etc.
WRT debt,…
[quote] Record high global debt of $250 trillion ‘could curb efforts to tackle climate risk,’ report warns
The global debt ballooned to a record high of more than $250 trillion and shows no sign of slowing down, according to a new report from the Institute of International Finance (IIF), which warned that this massive debt could impact international efforts to mitigate climate change.
Worldwide debt surged by $7.5 trillion in the first half of 2019, urging researchers to predict that the global debt would exceed $255 trillion by the end of the year.
…The bulk of the global debt – or more than 60% – is from the U.S. and China, the report released on Thursday found.
…Hidden debt and other “poorly understood contingent liabilities” can create additional uncertainty, the report said, “and could leave some sovereigns struggling to source international and domestic capital – including to combat climate change.”
so then the question becomes where does an investor put their savings,…
[quote] Bond World Is Backing Away From All That Negativity as 2019 Ends
It’s been the year that turned bond-market logic on its head, yet 2019 is ending with some hope that the worst of the negative-yield drama is over.
The global stock of debt with sub-zero yields has fallen to $11 trillion, the least since June, as a thaw in U.S.-China trade tensions brightens the world economic outlook. Earlier this year, a third of all investment-grade bonds—$17 trillion—had rates below 0%, meaning that buyers holding the securities to maturity are guaranteed to make a loss.
since this this forum got its start looking at RE, what ya all might find interesting is my own take on the local market
basically because of various RE holdings, I am on the short list of individuals here in town that gets pitched rentals, so what I hear is hey I’ve got a deal for you about apts in north park, bankers hill, city heights, etc.
to get a feel for the market I play along and ask questions to evaluate the deal,… long story short all too often seems like sub-prime deja vu, in that older rental stock is being flipped and the financing in place (to put the makeup on a pig-sty of a property) is short term bridge loans,… so have to conclude the trend of the past few years of ever increasing prices for rentals is unsustainable!!!
…looking at the big three investment classes (i.e. RE vs BONDS vs EQUITIES) the only alternative is EQUITIES because it has a low barrier to entry (meaning ya don’t have to have a large pool of money needed to buy in, like ya do w/ RE) and has some chance of yield/upside return (unlike bonds),… AND given the economic idea of supply and demand, the giant pool of money out in the world today is trying to purchase a smaller supply of “stock”
IOW looking at the number of companies listed on stock market back in 1999 vs today is lower,…
