I don’t think people realize that the biggest export here in America is the dollar.
The dollar must be printed and sent across the globe to prop up the debt based system.
For decades especially post 2008, those dollars flowed back into U.S equities and real estate.
A large percentage of U.S equities and real estate is owned by foreign investors.
Globalization was the name of the game mixed with the forever war model.
But if that is becoming less of a focus and the narrative shifting to “more domestic growth”, please understand the growth came on the back of millions of other folks across the globe getting wrecked.
So in other words, you need buyers of the debt to prop up the real estate market over the long term.
And as it currently stands, investors are demanding a yield higher than 5% and counting.
I’ll take the hard money that can’t be printed for $1,000, Jerry.
The Denominator Matters.
Higher rates mean lower prices. Buy great real estate & prepare to hold for long periods of time with cash flow. Ten years from now you’ll look like a genius.