Question for those of us who believe inflation is ahead, do you think property and real estate investments will provide their traditional hedge against inflation in the years to come, shelter from the storm?
Housing market ratios and fundamentals remain largely out of balance. The economy and labor market remain weak. The job market is slow, hiring is modest, no wage inflation on the horizon. Wages fuel housing.
Also, many speculate inflation will arrive through some other mechanism, currency devaluation from a dollar crisis for example. Foreign countries are already beginning to denominate trade and debt in non-dollar currencies.
If such inflation / devaluation occurs — inflation without labor and wage growth, it would reduce household incomes. It would eviscerate savings. The average standard of living would decline even further.
Is the housing market perhaps risking a further collapse in prices?
