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Nobody ever said that the RE and the stock market are always decorrelated. But it's undeniable that they sometimes are decorrelated. That makes the RE market a
by TomVDB 8y ago
Nobody ever said that the RE and the stock market are always decorrelated. But it's undeniable that they sometimes are decorrelated.
That makes the RE market a way to diversify your investments. Nothing more, nothing less.
There's no silver bullet that will protect you under all circumstances.
IOW: I have no idea what kind of point you're trying to make.
- cinquemb 8y agoMy point is that, sure, RE market is a way to diversify ones investments, but it is no longer a good way like everyone has blindly assumed it is because of the underlying conditions influencing risk assets in markets. If people think de-correlated upside, and correlated long tail downside is a suitable portfolio strategy, then I can't help but take the other-side of that trade… enjoy the slight premium while it lasts, because I'll take it back and then some when it blows up in your face.