ROFL….

Japan’s Vacant And Abandoned Houses: Visions of Detroit 

The Ministry of Internal Affairs and Communications surveys vacant houses every five years, splitting them into two categories: houses that could be rented, sold, or used as secondary houses; and abandoned houses. Over the fifteen years from 1993 to 2008, according to the most recent survey, total vacant houses ballooned by 72% to 7.57 million. They made up 13.1% of all houses nationwide, the highest proportion ever. Vacant but still usable houses increased by 63% to 4.88 million. And abandoned houses jumped by 91% to 2.68 million.

It’s not just in small towns suffering from depopulation, as the young migrate to urban centers. Over the decade through 2008, the number of abandoned houses in Tokyo jumped 60% to 190,000; and in Osaka 70% to 180,000! That was in 2008, before the financial crisis slammed into the housing market. Since then, the abandoned-house phenomenon has gotten worse.

JGBs Suffer Worst 4 Days In 10 Years As Nikkei Tops 15,000 First Time Since Jan 2008

This is what is going on in JGBs… JGBs were able to rally since smart money was hedging significantly (and not selling) but once the initial clusterf*&k exploded after the BoJ meeting (and protection costs soared), it seems clear that JGBs just became far too expensive to hold given their risk and so protection was unwound and positions were reduced… which is why we are now seeing JGB yields jumping…

Russia's Plan For The BRICS To Dismantle The Dollar System

The goals are clear. In the section titled “Strategic goals,” the first point on the BRICS’ agenda is the reform of the world financial system in order to make it “fairer, more stable, and more efficient.” In the later chapters, it is spelled clearly that this “reform” is actually a dismantling of the dollar system.

The problem with delusional optimists is they're usually the last to see it coming.

Of course this will all end well……

It's your typical gold rush story. Fast boom and even faster bust. You'll get 30% for the briefest of times. Just like in the gold rush days it's the guy selling picks and shovels that make the real coin not the gold digger.

There are exceptions to the rule but in general you buy on the hill for status and view. Don't misconstrue that for lifestyle because managing and caring for a hillside property is a bitch and expensive. Subies will charge 3 – 5 times normal because of access and safety issues. Hill side construction is multiples higher than flat land properties consequently ROI usually sucks big time. 

Unfortunately that could all change in the blink of an eye. I see the FED has leaked it's intentions to the WSJ on a QE windback attempt. That's going to make markets edgy and a whole lot more volatile. Currencies will also move with the FEDs shenanigans. Seems the smart movers are repositioning to currency sensitive stocks in anticipation of a dropping AU$. I'm not convinced the AU$ is as vulnerable as some say but if it does slip then the RBA could be forced to about face if inflation is seen as a threat. I'm not sure how it will affect bank borrowing costs in overseas markets but I doubt it will be cheaper so banks may move without the RBA. 

Interesting times.

Graphics say it all really. .25% is like using a cup to bail out a sinking boat when you need much bigger pump. 

Coach sounds so much better than over paid consultant.

As far as SS's go they tell you what you want to hear in the main. Fin models are only as good as the inputs. SS designers tend to reflect what the writer wants to know relevant to their particular style or strategies in investing so make sure you understand what the SS is telling you.

In this case the figures are static projections based on time of purchase. The SS doesn't have the capability to model dynamic trends or events. It doesn't look at market or book value on a YoY basis. Cap rates are based around purchase price.

All this is OK as long as you understand the limitations. Inflation and CG inputs can be very subjective and subject to a lot of market noise. What is real inflation? How do you reflect CG realistically over the life of an investment. What if rental rates stay static or climb faster/slower than the inflation rate? 

This SS can't give you a 'what-if' look into the future. For someone who can write SS's adding this feature might prove useful. The problem today is that markets are very volatile compared to the past. Trying to get a handle on best case worst case scenarios (especially worse case) is a must.

Anyway this SS is useful because it gives an inside-out look at analysis (local) rather than an outside-in look (foreigner).

Sent you aPM