With Obama elected for another 4 years, it looks like continuation of the same. Money printers will continue to churn our fresh fiat paper money and interest rates will remain at low rates while deficits will chug along higher in the short/medium term. Property and hard assets will continue to bubble higher until the eventual occurs.
In HK and rest of the world, property prices are ridiculously high and only affordable as interest rates are dirt cheap compared to historical norms. Recent measures here in HK are to make property more affordable for the masses and the concern is a repeat of the 1998 crash when the former Chief Tung Chee Wah applied too much medicine. Recently, HK was hit with additional stamp duties and taxes to weed out foreign buyers (typically mainlanders) who looked to put their strong appreciated RMB into undervalued HKDs pegged to USD. Housing supply has been stepped up to bring equilibrium more in balance and to curtail prices but these measures take time to take effect. In SG, the trend is similar while the southern neighbor is also able to strengthen the Sing dollar to ease up pressure on their own SG dollar. Rest of the world is facing similar issues as the US continue with their weak dollar policy to strengthen their manufacturing sector and jobs. In turn, jobs are returning to the USA which will eventually put Americans back to work with recovery expected. In mainland and parts of India, jobs are leaving once-cheap labor areas and back to America as the price differentials are no longer the reason to outsource/offshore as in the 80-90s. Not sure but this will likely be the case for jobs returning to Canada also but the loonie is quite strong and less attractive. There will continue to be a shift back from emerging countries which will spell concern for these growing emerging countries like China, India as they try to adapt from export-driven to local now.
Question remains on when the eventual will occur eg, bubble pops. In my opinion, the eventual will occur when confidence is lost and reality sets in on the ridiculousness. This remains to be seen on what triggers the next leg down eg, major bank/city goes bankrupt etc. While we all need shelter, little can be done as renting would be quite unattractive at current market rental rates that cannot be support by the current salary levels eg, CAD75k per annum to rent a place like ours. The eventual will occur as renters now are feeding the markets as they are priced out of the renters market based on their own affordability/salaries. So these renters will grab what they can before prices are too high to chase further, how sad. Looks like a repeat of another bubble popping in store eventually ... on the flipside, we (families) still need a stable place to live w/o the hassles of having to move ... we'll take it one step at a time with kids' schooling, our future plans, etc ...
Enjoy the ride (asset wave) while we can ...
All markets from real estate to resources to miners will continue with glory days with continued monetary easing. At a point, the USD will be so low compared with all other currencies this will be pivotal moment that they either have to reverse course or risk huge devaluation and loss of confidence in the almighty USD. US in in a bind with their deficits so there's no clear solution on how to pull out of this one. Face tough medicine that will compress growth/econ for next decade or two or continue with their merry recklessness without fear as super mighty ... we will see the inevitable in our lifetime and it is hoped that we're able to ride the wave higher for much longer but the dread will eventually come to haunt ...
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PS. We all have our own opinions. I value family and friends first then other peoples' opinions especially away from all the riftraft that make up about 95% of the internet stock forum chat forums. Doesn't take too long for you to get an idea of who makes up the 95% and those that make up the 5%. The 95% are not in your best interests when it comes to any form of commentary on markets or on other topics. Family and friends are always in your best interests. The other 5% are also in your best interests. The best of the best are those I follow on twitter or are part of my private forum here on Stockhouse. Btw, to the usual riftraft, childish commentary and acting unprofessional on the interent is the best way at knowing what your agenda is longer term, tsk tsk tsk, for shame kiddies....as if you don't know that already as it is all pure entertainment value, no value at all thereby why bother reading every single post, just single out a few good people out of the 5% and enjoy your investments thru the bad and good times less the headache from the internet, we all got other priorities to give attention to away from the internet, away from the markets, don't we, usual riftraft. Headaches caused by things away from internet are felt and far more important to tend to than those possible headaches, mind games, mindless games being played out on the internet, why bother with the riftraft. Are the 95% not like phishing scams that riddle the internet world. Yeppers, 100%, tou can take that to the bank. :) :) :)
Cheers,
Dave.
