2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 366.07

-0.1%

Nov 6 4:00 PM EST

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To: bart13 who wrote (119793)	6/6/2016 1:52:19 AM
From: John Vosilla	Read Replies (2) of 217561

10 year treasury is most used as the base point to create a discount rate for projected ten year cash flows and cap rate to arrive at current valuations. Ten year averaging around 1.8% for a while here but it was in the 4.25% to 4.5% range back in 2005-07. I have seen numbers like 4.4% as the cap rate today versus 6.8% for similar property a decade ago which makes sense versus the risk free rate. All this financial engineering can support valuations 50% higher than the previous peak with every other factor remaining constant. Even more scarier since rents have skyrocketed the valuations can go even higher before this ends. The Real Estate See Saw: Falling Rates & Rising Prices Read more: creonline.com

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