these pension funds are under pressure to get maximum yields. fixed instruments have been forcing these funds to accept extremely low yields for four years. most of these funds are still trying to make up for the losses they suffered after the tech crash. unfortunately, they are getting in at the top, if they are buying american real estate in hot market areas. latin american and eastern european real estate, on the other hand, may still have legs. calpers is presently investing a good deal of money over seas. some of that investment may be real estate related.
That you worry shows you have sense, for there is much to worry about. Still, look to the Vanguard REIT Index for another gauge of the real estate market. Right now you can see the effect of money still coming to the sector, and you can see valuations become increasingly troublesome. Nonetheless there is always a rationale to buying a market going up and institutions as well as private investors are buying.
jennifer, insiders are cashing out of reits at an alarming rate. major home builder insiders are cashing out of their companies at an alarming rate. maybe these insiders know something the pension fund managers don't know.
Agreed realist. There is a time to say "enough." Long term real estate investors are often taking profits. Nonetheless, new money comes in as CR points out.
Excellent topic, CR. One I have been watching for a while.
Also, I have been watching the Govt. Employee Pension and benfit looting.
Once again I say: thirty years of the I-Don't-Really-Know-How-To Do-Anything univ staff pumping out hot air and paper professionals. Yuppies (now their offspring guppies) wanting to live princely lifestyles --off other people's money and genuine productive work and exports.
But seriously, it's remarkable that professionals are deciding to put money into what is surely a risky sector - even if it is appreciating at the moment.
BTW, I've been a long-time reader and fan of this website.
There is absolutely no mystery. Institutional investors as a class are always late to find a bull market sector and late to leave. John Bogle has shown this repeatedly and Warren Buffett has spoken of it. There are superb institutional investors, but as a class they do not distinguish themselves.
What I find amazing is that the California affordability index was actually lower in 1989 than it is now... maybe the bubble still has some gas left in it.
All these Funds have been driving developers and all involved in while driving up the prices. And, too many tax laws finagled to favor a one sector economy.
Do any yuppies (and their guppy offpsring)even care about the repercussions? They don't seem to get it at all...the govt. spending, the military budgets, buying expensive foreign made cars and toys, sending other families' kids off to lose limb or life, making, the great United States making nothing and exporting nothing but some farm products (for a while longer).
What happens when the music stops... and all their butts are owned by foreign central banks...and they and their offspring are pushing papers around or whatever type service job ...and export nothing?
This is about saving the country.
Should I even use the energy any more?
These topics should be on something like C-Span every weekend and hammered out. (Lou Dobbs has been covering hollowing out of the econ, trade deficits, current account deficits, and more. Unfortunately, he's on at an unusual time.)
The problem is narrowing the problems so we can feel we can make an impact in the smallest way. How do I change my life slightly to account for the important issues you have in mind?
Dr. Z. I agree & understand it's some 2% points. I'd love to hear an Economist talk to this considering how much home prices have risen, how little wages & Gov't. inflation have grown. But, I don't believe it's reasonable to think this bubble has even another month left in it. Very few are lucky enough to sell at the top or buy at the low. lol.
these pension funds are under pressure to get maximum yields. fixed instruments have been forcing these funds to accept extremely low yields for four years. most of these funds are still trying to make up for the losses they suffered after the tech crash. unfortunately, they are getting in at the top, if they are buying american real estate in hot market areas. latin american and eastern european real estate, on the other hand, may still have legs. calpers is presently investing a good deal of money over seas. some of that investment may be real estate related.
That you worry shows you have sense, for there is much to worry about. Still, look to the Vanguard REIT Index for another gauge of the real estate market. Right now you can see the effect of money still coming to the sector, and you can see valuations become increasingly troublesome. Nonetheless there is always a rationale to buying a market going up and institutions as well as private investors are buying.
This website is a joy.
Jennifer, Thank you! Very nice of you.
jennifer, insiders are cashing out of reits at an alarming rate. major home builder insiders are cashing out of their companies at an alarming rate. maybe these insiders know something the pension fund managers don't know.
Agreed realist. There is a time to say "enough." Long term real estate investors are often taking profits. Nonetheless, new money comes in as CR points out.
Excellent topic, CR. One I have been watching for a while.
Also, I have been watching the Govt. Employee Pension and benfit looting.
Once again I say: thirty years of the I-Don't-Really-Know-How-To Do-Anything univ staff pumping out hot air and paper professionals. Yuppies (now their offspring guppies) wanting to live princely lifestyles --off other people's money and genuine productive work and exports.
When will the madness end?
But seriously, it's remarkable that professionals are deciding to put money into what is surely a risky sector - even if it is appreciating at the moment.
BTW, I've been a long-time reader and fan of this website.
There is absolutely no mystery. Institutional investors as a class are always late to find a bull market sector and late to leave. John Bogle has shown this repeatedly and Warren Buffett has spoken of it. There are superb institutional investors, but as a class they do not distinguish themselves.
What I find amazing is that the California affordability index was actually lower in 1989 than it is now... maybe the bubble still has some gas left in it.
... and buying:
404 - Resource not found
All these Funds have been driving developers and all involved in while driving up the prices. And, too many tax laws finagled to favor a one sector economy.
Do any yuppies (and their guppy offpsring)even care about the repercussions? They don't seem to get it at all...the govt. spending, the military budgets, buying expensive foreign made cars and toys, sending other families' kids off to lose limb or life, making, the great United States making nothing and exporting nothing but some farm products (for a while longer).
What happens when the music stops... and all their butts are owned by foreign central banks...and they and their offspring are pushing papers around or whatever type service job ...and export nothing?
This is about saving the country.
Should I even use the energy any more?
These topics should be on something like C-Span every weekend and hammered out. (Lou Dobbs has been covering hollowing out of the econ, trade deficits, current account deficits, and more. Unfortunately, he's on at an unusual time.)
Alexis
The problem is narrowing the problems so we can feel we can make an impact in the smallest way. How do I change my life slightly to account for the important issues you have in mind?
Dr. Z. I agree & understand it's some 2% points. I'd love to hear an Economist talk to this considering how much home prices have risen, how little wages & Gov't. inflation have grown. But, I don't believe it's reasonable to think this bubble has even another month left in it. Very few are lucky enough to sell at the top or buy at the low. lol.