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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 688.93+0.5%4:00 PM EST

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To: robert b furman who wrote (47799)4/24/2012 7:08:21 PM
From: Johnny Canuck  Read Replies (2) of 69946
 
I am not sure the strategy of buying as much house as you can afford is going to be a winning strategy in the future. With the baby boom generate set to downsize in the next few years as many of them retire and have to cash in to fund their retirement I am not sure that will not depress prices for the next decade.

Also consider the generation coming after is not a large as you get a corresponding weakening in demand.
A lot of young people graduating now are having a hard time finding jobs and baby boomer holding on to their
jobs longer means means the peak earning years of young people will be delayed.

Of course in large cities like New York the demand will always be there but whether you see the prices gains of the last decade I don't believe it will repeat itself.

Demographics is just working against homes being the best investment. With the huge debt of a lot of governments I don't see them inflating their way out of the problem as I did a few years ago. The economies can not handle the stress of the inflation and a result you won't see the asset inflation that we saw in the 70's and early 2000's.
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