So you invest in shares by looking at the market average not the fundamentals of the individual stock.Most things in finance deal with averages and aggregate data.
I'd say a lot of investors are buying on a PE of around 30 these days.
Whatever the figure is, you'd have to be lucky to buy at a PE of say 14 these days.
From a purely financial perspective I just don't see the benefit of buying, especially since most people can only afford to buy in areas with poor public transport and generally long commute times to work.
I look at the shares i sold to buy my home in 1997. Those shares are all 8-13 times higher, and I have no idea how much the dividends would total to. My house is maybe 2.5 times increased in value, but then need to account for the purchase and holding costs.
Personally, I think I could be retired now if I'd not bought my house and had continued investing in shares for the last 16 years.
Most things in finance deal with averages and aggregate data.
I'd say a lot of investors are buying on a PE of around 30 these days.
Whatever the figure is, you'd have to be lucky to buy at a PE of say 14 these days.
From a purely financial perspective I just don't see the benefit of buying, especially since most people can only afford to buy in areas with poor public transport and generally long commute times to work.
I look at the shares i sold to buy my home in 1997. Those shares are all 8-13 times higher, and I have no idea how much the dividends would total to. My house is maybe 2.5 times increased in value, but then need to account for the purchase and holding costs.
Personally, I think I could be retired now if I'd not bought my house and had continued investing in shares for the last 16 years.
I was buying 4 bed homes for $97K
$280/ week rent and Interest only at 6.5%
PE ratio of about 15. Almost half what it is now according to report linked a few posts ago.
It's a pre-tax yield of close to 15% but a pre-tax PE ratio of 6.65
Good luck finding something yielding 15%!
LOL the irony, as Earnings Yield (reciprocal i.e. E/P) of a 6.65 P/E is 15%!:
As much as I enjoy irony, I don't see any?
It's not ironic that the correct P/E of 6.65 for techs historical example just so happened to be almost the exact number you said good luck finding something yielding that (incorrect P/E)?:
I thought it was anyway.
In 1995 apparently 15% yield on property was achieveable. I can't imagine you can get it anywhere today, so good luck finding it, which was my point.
ETA: A pe of 15 is probably achieveable if you looked hard enough.
Just rememberr the signs for when it happens again in our lifetime.
I'll be too old to give a damn but you younger ones may well get on it!
Thinking I will be push up daisies before I see interest rates above 10% again, aka 1995. That was a time when having money was worth something, today, better to borrow it seems than save.
Cheers
You never know ... all the savers just need to start their own union or something lol.
Why save when central banks can just print it, our own government will sell out future governments to keep it for the short term.
Bankers have become the drug dealers of choice.
Just rememberr the signs for when it happens again in our lifetime.
I'll be too old to give a damn but you younger ones may well get on it!
Exactly and because property cycles tend to be longer you can be in two completely different positions in 22 years time depending on when you bought/buy in.
One thing to keep in mind is that the baby boom and the years leading to the GFC (1960-2005) are unlike any other point in history. We had the quickest and largest population doubling EVER! These people have gone through the cycles and have accumulated wealth and increased demand. Than came the credit growth. I doubt this will ever happen in human history again.
Property cycle is made up, it is not a cycle because all it has ever done is gone up.
Pushing people out of housing. Just like a 3rd world country.
Just showing how I recognised opportunity.
Not that hard!
imo, the market is flat, and will be in real terms for years, until there is either a shock (eg atm China is looking interesting) or underlying earnings have a decent catchup.
MW
So, when is it going to end? Has it already ended? Did it end 2 years ago?
imo, the market is flat, and will be in real terms for years, until there is either a shock (eg atm China is looking interesting) or underlying earnings have a decent catchup.
Just rememberr the signs for when it happens again in our lifetime.
I'll be too old to give a damn but you younger ones may well get on it!
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