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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.96+0.2%Nov 19 4:00 PM EST
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To: elmatador who wrote (113080)8/27/2015 6:15:49 AM
From: THE ANT1 Recommendation

Recommended By
3bar

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It will take awhile for people to realize that 0% rates are high and equivalent to a high rate above inflation in the past. Getting 1% return in an asset deflating world is better than many savers have done in the past. As I have noted before 4% 30 year mortgages and 3.25% 15 years are high in a housing market likely to deflate at least 1% a year for 30 years. We have watched housing increase in value as low nominal rates raise housing values even in a real interest rate increase environment Once that value is priced in there is no where to go.It may take many years for rates to rise but as they do housing will lose relative to inflation.All assets are in a similar spot.On top of that we have had a tail wind of increasing debt for the last 30 years and that is likely over. Lets say 100 year DEBT/GDP was 150% and in last 30 years has gone to 400%. That is 250%/30 years or 8.3% a year of added debt propelling asset prices. That is about to end and likely to go negative and that explains less than 2% GDP as far as the eye can see.Many of the 0.1% got there on the teets of the FED and want to at least keep what they have.You will identify them by their actions as the try to keep blame off the FED. Beware many of them are gods
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