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Strategies & Market Trends : Value Investing

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Lance Bredvold
To: Madharry who wrote (69572)1/22/2022 11:49:50 AM
From: JohnyP1 Recommendation  Read Replies (1) of 78476
 
When broad decline starts everything falls due to liquidations etc. I view what is happening as healthy for the market and bubbles popping. That being said I'm very wary of homebuilders. For one, China real estate is crumbling and there has been wild speculation worldwide in housing over the past decade. I was in Greece during the Christmas-new Year holiday and the building activity in Athens is way above 2007 and the prices are so high that make no sense. Cheap money coming from northern European companies (eg. Ten Brinke) have picked up the building activity there, but the prices are way above anything a Greek worker can pay. They all think that rich people from abroad will be buying these properties or wealthy locals, but I am too sceptical.

I think rising rates will prick the Real Estate bubble worldwide and it will not take much of those to do that either. I wouldn't want to be in property developers this close to a recession.

My pick for these volatile times is FLTDF (Flow Traders) which should be doing way better in 2022 already.
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