I am getting more and more frustrated with the gloom and doom being espoused in all circles financial, whether involving the recent turmoil in world stockmarkets or the long awaited housing correction.
I say correction rather than crash because we can’t expect 10-20% compound annual growth from property, or indeed any other asset class for that matter, on any kind of medium or long-term basis. We are now potentially entering a bear market, which is defined as a prolonged period in which share prices fall, accompanied by widespread pessimism. Bear markets usually occur when the economy is in a recession and unemployment is high, or when inflation is rising quickly. Alternatively, if the period of falling stock prices is short and immediately follows a period of rising stock prices, it is...
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