I speak from both self-interest and public interest.
(a) the Fed will have to exit at some point
(b) it ain’t gonna be pretty (think of the early 80s with 10+% rates)
(c) the Fed may have already lost control of markets and rates (people are talking about an 0.1-0.25% drop in mortgage rates vs the ~1.25% rise in May). Dow also plunged 220 points in the last two days — even before the budget vote, the Dow was down 40 points yesterday. QE was novel in 2009; now it’s the status quo.
(d) I have no desire to invest in third-world “emerging” pestholes — lack of rule-of-law and widespread corruption means that I don’t know what is really happening with my money. No thanks. I’ll stick to US property when opportunities with the appropriate cap rate present. And there are still many, more to come as well.
