I wonder if anyone is aware of the “economic clock” and where they believe we are the moment?
This article is a bit old but very interesting.
http://www.ezycast.com/index.cfm?type=education&article=economic_cycles
I would suggest that we may be at about 12-1 o’clock, indicating that the share market doesn’t have far to go, and property is the next asset class to focus on.
Any comments?
I agree with the clock position. Property and shares have what is known as a negative corelation. When shares collapse it is due to people taking money out of the stock market. Where does this money go? Usually it goes into property as shares are now thought of as risky.
Another web site to look at is
http://www.afsd.com.au/article/aip/aip32a.htm
It really depends on the interest rate read this Age Story
http://www.theage.com.au/news/BUSINESS/Rate-hike-tipped-to-hurt-renters-buyers/2006/11/08/1162661728997.html
Cycle goes like this .. Low interest Rates –>High house prices -> Low rental Yield -> investment into Shares –>>> Interest Rate increase ->>> less inverstors in property >> llower property prices ->> lower vacancy rates >> higher rental yields than share market or bond market —>>> shares abandoned –> interest rate decrease –> investors buy property … Any one that buys at the top of the property market gets creamed by the rising interest rates and massive negative gearing.Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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