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You might consider the Japanese experience. In the 1980s they had an asset price bubble fueled by loose monetary policy. The Nikkei never recovered from its pe
by graeme 7y ago
You might consider the Japanese experience. In the 1980s they had an asset price bubble fueled by loose monetary policy.
The Nikkei never recovered from its peak.
Is that probable? Perhaps not. Is it possible? Definitely. We have had an asset price bubble and loose monetary policy.
Investing on margin is a mug’s game. You can’t realistically know when the bottom of a market is. Also, if an asset price bubble does pop, your home will likely go down a lot in value too.
https://en.wikipedia.org/wiki/Lost_Decade_(Japan)#/media/File:Harga_Saham_Nikkei_225.png https://en.wikipedia.org/wiki/Lost_Decade_(Japan)#/media/Fil...
Also: in the great depression stocks fell for 3-4 years. They didn’t recover until after world war II.