I’ve quit believing these market is crashing and middle class is vanishing stories. They’ve been saying that the middle class is vanishing for the last 10 years yet people are spending more on just about everything including homes that have increased in value upto 40% in just the last 2 years but people are still tripping over each other to buy them. Does not look like an eroding middle class to me!!
The truth is that the stock market is skyrocketing and people are getting richer, home values are rising steadily and people are feeling the wealth there as well. The economy and jobs picture is improving each month and that’s another bonus.
Reality – The economy is in overdrive and people are doing very well
Media – Everyone is suffering, the market is going to crash
And there is no reason low interest rates will not go on for the foreseeable future. My guess is that rates will not rise much for the next 2-3 years at least. Thats plenty of time for the stock market and home prices to rise even more and after that if there is a correction of 20% who cares, the overall picture will still be extremely positive.
In 3 years if the DOW rises to 20,000 and we lose 20% (and thats a big IF) it will come back down to 16000 which is still ahead of where we are today, if homes prices rise another 20% in 3 years and there is a 20% correction we’re still at current values. Not a big deal.
