Real estate lags, the stock market predicts… So should we beworried?
Really only perceptions among investors are finally changing byturning more pessimistic. For real estate markets—retail and hotelswill register the impacts sooner.
The recent volatile downward moves on Wall Street and worldexchanges only underscore what has been obvious—the global economyremains impaired and has lived off extremely low interest rates andvarious forms of stimulus.
- Europe has not recovered from the 2008 debt crisis—ageingdemographics and welfare state systems challenge growth.
- China's debt-fueled infrastructure and real estate boom has runout of gas.
- Brazil suffers from China's malaise and India is too unwieldy(corrupt and inefficient)
- Fear over West Africa's Ebola epidemic threatens furthershockwaves
The good news is really bad news—energy prices are down (SorryMr. Putin—add Russia to the impaired country list). That's becausethe world economic engine is in this distress and demand for energyhas slackened.
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