Quote:
Originally Posted by pwd72s
Wayne, you seem to ignore the federal spending spree as a factor. That raised the inflation rate. Powell has a target of a 2% inflation rate, is raising the interest rate in an attempt to curb inflation. Yet for political reasons he isn't crying; "It's the spending, stupid!"
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This. Plus student debt will be hitting the tables and no more bankruptcies allowed. A.I. will be huge and taking over a plethora of jobs. Downtown RE is not recovering from the Covid1 era and people working from home will lower tax income from cities, which will have to raise prop tax, sales, gas, registration, paid roads, etc. Manufacturing has been MIA a long time. IP goes out the window as soon as the colleges create it. Education is null for the next generation and public outlook is heading into a steep dive. Boomer inheritance money is in the cross hairs of the IRS
https://www.zerohedge.com/personal-finance/new-inherited-ira-rules-mean-heirs-could-be-left-large-tax-bills. etc. I've missed a few but you get the gist.
A 'soft landing' with slowly increasing interest returns in bank investments will not keep up with true CPI/COLA, and savings will be whittled away sitting in an account or bonds.
That traditionally means a flood of money into RE which will make rental housing unaffordable again. Ask me about ownership with property taxes and utility costs which will trickle down eventually, like it or not. This might equate to a further flood of people moving away from big cities.
Everything is getting squeezed so the last bastion of hope to retain value will be the stock market gambling circuit again. 15% ensures that, but it is another golden egg to be removed from a plucked goose. Not necessarily in this country, not necessarily by these citizens. The rest of the world has it's problems as well. There is a global trend which can't be discussed here. I have no further positive advice to add to this conversation.