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I'm very skeptical that there's going to be a prolonged slump. What happens when the next economic recession/crisis comes, and the Fed starts lowering interest

• bombcar 4y ago
  There's nothing guaranteeing the Fed will try to juice the market the same way they've done in the past; for example the government could decide to try to counter unemployment with direct employment instead of lowering rates, or sudden reductions in immigration (for whatever reason) could cause unemployment to remain low even as rates skyrocket. The main floor on prices is the cost of new building, if that starts to drop than house prices will drop with it in the areas where building is occurring, which helps slow down the rise everywhere.
  • lotsofpulp 4y ago
    >There's nothing guaranteeing the Fed will try to juice the market the same way they've done in the past; There is a ton of political will to ensuring the market keeps rising. Significant portion of voters are invested via retirement account. Politicians are invested via their own investments. Rich people own public equities, And finally, hundreds of billions of dollars of unfunded liabilities for taxpayer funded pensions are invested in the market. The worse the market performs, the higher taxes have to be to pay for all those good plated retirement benefits. If anything, I would say the only guarantee is that on a timescale of 5+ years, government leaders will always choose to sacrifice purchasing power of currency to keep nominal asset value increasing.