CDZ Aftermath of the Great Inflation

[william the wie]

There are various start dates given for the great inflation some as early as 1958, some as late 1965 but many of the symptoms are still with us:

No brainer stock picks such as IBM, Xerox, GM and Polaroid in the past v. Amazon, Apple, Facebook, Google and Microsoft now.

Low savings rates, subsidized education (GI Bill) and huge infrastructure projects like Eisenhower's interstate highway project are used to decrease shipping costs and slow inflation rates.

A resumption of the housing bubble. VA loans, the S&L crisis that was resolved in 93 slightly overlapped the tech/housing bubble of 1993 -2000 and the 2003-8 bubble bust is going to be repeated.

When and if the bubble blowing by DC will end is anybody's guess.

 

[Manonthestreet]

2 trends converging for housing market....baby boomers heading into nursing homes and out the door and millennials who cant afford or dont want to own a home........throw in alrdy ridiculous prices I wonder how much longer they can levitate them. Still building strong here......though the builders and craftsmen my brother talks too think they are on thin ice again,,,,,dont get caught with too many contractors owing ya or its lights out

 

[william the wie]

2 trends converging for housing market....baby boomers heading into nursing homes and out the door and millennials who cant afford or dont want to own a home........throw in alrdy ridiculous prices I wonder how much longer they can levitate them. Still building strong here......though the builders and craftsmen my brother talks too think they are on thin ice again,,,,,dont get caught with too many contractors owing ya or its lights out

That's definitely true here in FL. Leave one exterior wall standing so the construction counts as a remodel. Then at least double the size of the house under AC and then sell for at least 250% of purchase price. I'm surprised the flippers are making any net after their draw for wages.