“Lower rates don’t mean households go out and borrow immediately especially during periods of economic anxiety.”
Haha you don’t know your people very well. Americans just can’t help themselves, we are optimistic, not anxious.
“Some real estate deals are cash only. Like condos in communities witth low owner occupancy.”
The alternative investment of bonds keeps getting worse and worse. I think stocks are roughly at fair value and would guess returns over the next 5 years of about 2% appreciation and 3% dividend. Not bad, not great, and plenty of volatility.
For bonds, do you really want to lock in a 1.97% return for 30 years, and have to pay income tax on the full 1.97% every year? Not me!
The problem with the fed rate increases the past few years is banks suddenly are paying 1.5-2% on savings accounts, though you have to move the money around every year to get the promo rates. Let’s knock that down to 0 again.
