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To: John Vosilla who wrote (915)6/25/2007 1:15:07 PM
From: SouthFloridaGuyRead Replies (1) | Respond to of 1718
 
Housing was flat back then because the cost of capital was high. Good fundamentals supported prices via rental inflation. That's a ripe market for massive appreciation once the cost of capital lowers (as we found out later on).

Stock appreciation, LBO's, etc. are a little different because they are occurring with so-so fundamentals but still very low cost of capital.

Stocks will continue to rise until the cost of capital goes up, but unlike housing in 1998-2001, I doubt the fundamentals will be supportive as the cost of capital goes up.

You'll get your bear market then, but not now, not yet.



To: John Vosilla who wrote (915)6/28/2007 10:16:17 AM
From: Jim McMannisRead Replies (1) | Respond to of 1718
 
Now General Motors has broken out to a 2.5 year high. Go figure. Go Generals. I believe a lot of deflationists <cough> said they were gonna go belly up a couple years ago. They may yet.


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