DFY Real Estate
There has been a number of articles recently commenting on the crisis in the bond markets overseas. The Washington Post, The Financial Times, and hundreds more have been commenting on what this means for America, for the American Bond Market, and most importantly for you and me. It’s crucial to stay updated on what this means for pension funds here in the states as well as the impact this global crisis may have on real estate investing.
In a recent article by the Washington Post, titled, “The Black Hole Engulfing the World’s Bond Markets,” they tell us:
“There’s a multi-trillion dollar black hole growing at the heart of the world’s financial markets. Negative-yielding debt — bonds worth less, not more, if held to maturity — is spreading to more corners of the bond universe, destroying potential returns for investors and turning the system as we know it on its head. Sub-zero bonds look like they’re here to stay, with implications for mom-and-pop savers, pensioners, investors, buyout firms and governments.”
Read the article to see all the details, but at the end of the day, the article, in addition to explaining the ongoing global crisis, shares the following information that is important for us to know:
“Negative rates are at odds with basic principles of the global finance system. All this can push investors into riskier bets in the hunt for returns.”
What does this mean for you and me? People will be looking for alternative investments for retirement, and they will look to real estate. With rates staying low and the DFY markets primed for the potential of amazing investment returns, make sure you are buying as much as possible as soon as possible before an influx of new investors pushes real estate prices higher.
Read the full Washington Post article by clicking the link below: