Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Wharf who wrote (23045)	4/22/2005 9:49:19 PM
From: sea_urchin	Respond to of 81137

Darleen > The extent of this property bubble to me is huge I don't know the relationship between the appreciation of domestic in comparison to commercial property, but here are some charts of the REIT index which show how the Real Estate Investment Trusts have outperformed the rest of the market. stockcharts.com[l,a]wallynay[dj][pd20,2][ila12,26,9!lb14] stockcharts.com[l,a]walaynay[dj][pd20,2][ila12,26,9!lb14] stockcharts.com[l,a]walaynay[dj][pd20,2][ila12,26,9!lb14] As you see, neither gold nor general equities have been able to hold a candle to real estate -- and I would imagine that relationship will still continue for some time to come. REIT and S&P500 now seem to have a better relationship than before but I do not see a turn in the relationship between REIT and gold. I know you will ask me how REITs can continue to outperform if there's a bubble in the property market? I will respond by saying if the property bubble "pops" it will be so deflationary to the US economy that equities and gold will also fall. And, of course, no-one can say which will fall the most?

To: The Wharf who wrote (23045)	4/24/2005 10:39:35 AM
From: sea_urchin	Respond to of 81137

Darleen > I spoke with my dear friend who as I has a son who is buying a house This piece seems to have been written with your son and your friend's son in mind. lewrockwell.com >>Housing prices have been driven up to manic levels in California, Las Vegas, and east coast urban centers. Where brains congregate, where the division of labor is high, and where businesses pay for talent, housing prices are astronomical. I define "astronomical" as follows: "Whenever the monthly payments on a no-money-down home are twice or more than the rental price of a comparable home." Into these markets come the Johnny-come-latelies – the people who thought they could not afford to buy when prices were merely stratospheric. They see the last train out leaving the station. "I’ll never be able to buy a home!" they wail.<<