Interesting… I was just having a conversation with my dad about investing in real estate and stock market investing – When he hit me with the notion that I shouldn’t assume the markets may ever recover. I’ve always known that anything is only worth what people are willing to pay for it but I never considered what the true value of a home is. Generally speaking, a house is only worth the cost to build it, plus the land, minus depreciation. With regards to the stock market, even though the markets are down a lot from their lofty highs, they are still not sustainable based on their current valuations. What exactly does this mean? I have some ideas.
We’re screwed if my dad is right.