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Strategies & Market Trends : US Inflation and What To Do About It

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To: John Vosilla who wrote (1324)1/15/2020 9:40:15 AM
From: RetiredNow  Read Replies (1) of 1504
 
Quite possibly, but mortgage rates are so darned low, I'm not sure we have much elasticity of demand anymore. I think we just have Demand with a capital D. That won't change much until rates go above 4%. Right now, you can get jumbo 15 year loans for 3.7 or 3.8% and 5/1 ARMS for as low as 3.12%. I mean, WOW! No wonder housing prices have been on a rocket ship to the moon. The Fed is blowing a bubble FAR larger than the one that lead to the financial crisis.

But then again, how long can this go on? Could go one for another couple years. That's why I never short markets. It's an easy way to lose money. I don't mind not participating in gains by being conservative, but I make it a practice to never do things that could lose me substantial money.
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