[quote=deadzone]Yes I absolutely believe that, it is logical given the only reason those prices shot up the last two years were due to various Covid policies, most notably Fed money printing, PPP loans, Stimmies, Mortgage and rent moratoriums, historic low interest rates, work from home, etc.
Every one of the above influences has started to reverse and if you believe Covid is over, from a government policy perspective, will continue to reverse or expire.
By far the biggest contributor to this is Fed QE/money printing. So personally I’m not going to bet the farm on anything. They say they are going to raise interest rates starting in March, and also start winding down balance sheet, most notably MBS purchases starting in March. Market seems to believe it so far. But I won’t believe it until it happens.
Fed has proven consistently that their #1 mandate is to inflate stock and RE prices above all else. They realize (correctly) that our economy is totally reliant on wealth effect. Without it, our economy will implode. That’s why they kept up QE constantly since 2009, even though the recovery was complete by about 2013 or so.[/quote]
Just wanted to double check again. Do you really think things will crash and burn? Like almost definite? Both the stock market and real estate market? Can we cant your confirmation for this afternoon too?
