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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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The Coming RE Debacle
Starting with the premise that history repeats itself.
How bad will the coming/now here RE correction be?
I have bin pondering this for awhile.
The Stock Market correction starting in 2000 was the worst Bear Market since the Great Depression of the 1930's. Does this severe down draft portend that RE will follow a similar course.
And since it seems the Business Cycle is still alive and well does that mean the the Stock Market will rebound as well as the recent Housing Market.
Or is it that the Stock Market will just meander for the forseeable futher?
At the moment the Stock Market based upon current corporate earnings is undervalued...and several Stock Market analysts see the SM to be 20% undervalued. Microsoft being one of those companys whose breakup value is apx 30% higher than its current price level. Exxon is trading at apx 12 times earnings when the current PE rato is just under 20 times earnings for the SP 500
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"Some Observer"
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