Hello everyone,
I've gone through chapter 3 of dean's profit from real estate now. I have come up with the following factors.
1). Interest rates-have been at steadily declining since 2013. i'm calculating that we are in a rising or peak market for IR.
2). Inflation data-have been steadily declining(I saw a large decline in 2015), but have calculated n/a.
3). flow of investment funds-the stock market has been steadily increasing over the last few years. I have rated this as n/a.
4). Business cycle-i'm seeing in the news recently that GDP growth in the first Qtr of 2016 is .5%. i'm calculating a downward trend.
5). Cataclysmic events-N/A.
Just wanted to see if anyone else has recently gone through this recent exercise and what they came up with.
Thanks!
What do you base rising interest rates on?
HI, I read in his book, page 32: "If interest rates just started going up after a 5 year low, that could be an of a peak market." My research is that they have been the lowest in 3 years. They haven't started to rise yet, but if they do, we could be at a peak situation. haven't calculated my local factors yet. Thanks for your comment
Take a look at Japan's interest rate for the last 20 years.
https://m.youtube.com/watch?v=HaNxAzLKegU
We are not in a typical scenario of historic recessions. As Koo states, it was the popping of a giant credit bubble. Thus, fed policy has not been normal. http://www.valuewalk.com/2016/04/qe-withdrawal-drugs/
thanks for sharing!
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Thanks! Great information as I continue my reading.