Hi Juster, <<real estate just keeps up with bond rates over time. Timing can give you an abnormal return or loss only in the short run>>
This is the reason I treat my industrial/commercial real estate like a bond, not leveraged, and never re-valued until successful exit, just earning the yield.
<<sounds just like the stock market>>
You are right that one can do as well, often with less hassle, on the bond and stock market, at times:0)
Most of my bonds were purchased during the Asian Financial Crisis (Bangkok Bank, Swire Pacific, Shanghai Industrial, and a Asian Tiger Bond fund, all USD denominated and yielding between 13-28% on cost), and recently I bought a bit of Global Crossing and NTL distressed debt securities, just to keep in practice.
I believe the cult of equity will go quiescent in a moment, slipping below the waves, and those without pre-positioned scuba gear down the blue abyss may not emerge again, and those weighed down by unsustainable debt and held down by deflating asset may not enjoy the excursion.
Chugs, Jay |
