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HP65
09-11-09, 15:52
"Shares rise before central banks push up interest rates because markets anticipate economic expansion first...."

Wow, interesting development which i can't wait to see. Increase in my equities portfolio, increase in interests rates and mortagage payments, excess supply vs demand as more condos TOP, marginal property speculators dumping units.......looks like history, just like in the past, will repeat again to allow me to buy more properties with gains from equities first.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9.ZzZW5rvEk&pos=3

moneyspinner
09-11-09, 16:02
"Shares rise before central banks push up interest rates because markets anticipate economic expansion first...."

Wow, interesting development which i can't wait to see. Increase in my equities portfolio, increase in interests rates and mortagage payments, excess supply vs demand as more condos TOP, marginal property speculators dumping units.......looks like history, just like in the past, will repeat again to allow me to buy more properties with gains from equities first.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9.ZzZW5rvEk&pos=3

I would tend to AGREE in view of the hugh concerns over the POSSIBLE EMERGENCE OF THE PROPERTY BUBBLE! It will cap property gains going forward!!!!!!!!!!!!!!!

ahlahdin
09-11-09, 22:04
in a cyclical asset boom,

buy shares now for short to medium term gain.

buy properties now for medium to long term gain.

because after a bull stock market boom, it is properties' turn.

it has always been like this, forever and ever more.

focus
09-11-09, 23:27
Actually..if it plays out right..
maybe 2009-2010 is the time for stocks..
then 2011-2012 is the time to move out of stocks into properties, which co-incidentally is around the time of many TOPs and possibly housing loan rate increases?
Then 2013.. hold cash... then 2014 repeat cycle... keke..

HP65
09-11-09, 23:43
Actually..if it plays out right..
maybe 2009-2010 is the time for stocks..
then 2011-2012 is the time to move out of stocks into properties, which co-incidentally is around the time of many TOPs and possibly housing loan rate increases?
Then 2013.. hold cash... then 2014 repeat cycle... keke..

That's close to my game plan too, although I will never get out completely from equities but yes, i forsee property prices correcting significantly when a lot of the projects TOP in the next 2-3 yrs down the road.

I also think there will be another economic tsunami that will negatively impact the recovery from the current crisis, delaying the actual recovery, in part due to the massive artifical life support provided by govts all over the world.