Over-valuation causes bubbles as opposed to appreciating assets. E.g. the common wisdom says equity is a generally appreciating asset class because the expected

Over-valuation causes bubbles as opposed to appreciating assets. E.g. the common wisdom says equity is a generally appreciating asset class because the expected return over a long horizon is positive. Similar is true of property except that no-one will give you a 40 year loan of 400k for peanuts to go trade the S&P.