Friday, May 18, 2007
Dear Mr Market
Dear Mr Market,
I understand that you are busy and that you've a lot on your plate, but I was wondering what precisely you meant by the recent weakness in real estate (see above chart). Did you mean that the economy will will be softening and so future rent and capital value increases will necessarily be limited, OR did you mean growth and liquidity will continue unchecked and so inflation will be HIGHER and thus interest rates will rise hurting relative values, even for the bluest of bluechip portfolios such as BXP's(see below).
Your insights would be helpful for if real estate has stopped being an anti-dollar hedge, then surely some people should told.
(always) Respectfully Yours,
(P.S. - I do realize it's expiry friday and that it just might be fun & games for sport & profit, but confirmation would help)