Yes, with the mass automation of data - pricing of stocks, RE, art, etc. is quicker than ever. Yet, will this also lead to quicker downturns...we shall see!
The stock market acts/reacts quicker than ever with 90%+ of trading automated. March 2020 the index lost nearly 50% of its value within weeks and only recovered after Powell of the Fed guaranteed WS an unlimited source of funds...aka a piggybank with no limits! Basically, the US govt. took over most of the US economy beginning in March 2020...as they did back in 2008...when will we get back to a free market economy again?
How long this extreme boom-bust cycle can continue...who knows?!
How it will affect RE when the piggyback has limits again...we shall see!
Interesting read. It seems that you're well balanced but that you're leaning at least slightly toward technology facilitating booms more than busts. If that's true, the question of sustainability and connection to fundamentals emerges for me as it always does with respect to other writing on asset bubbles. I also wonder if the speed itself insulates against poor decisions making. I don't think it does and the stock market demonstrates this well, I think. This in turn brings me back to the sustainability question. Appreciate your thoughts.
Excellent article. I would add availability of funds. Two points: First, mortgage processing is now faster, some lenders can close in 30 days. And given how much information is available, it is more likely to be a successful process. Second, there are many non traditional sources of cash. SoFi for example disburses loans of up to $100K in 48 hours. Similar timeline for a 401k loan. This allows someone to see a house they like online on a Monday, and get the keys by Friday. The result is additional acceleration of the market.
Excellent thesis!
Yes, with the mass automation of data - pricing of stocks, RE, art, etc. is quicker than ever. Yet, will this also lead to quicker downturns...we shall see!
The stock market acts/reacts quicker than ever with 90%+ of trading automated. March 2020 the index lost nearly 50% of its value within weeks and only recovered after Powell of the Fed guaranteed WS an unlimited source of funds...aka a piggybank with no limits! Basically, the US govt. took over most of the US economy beginning in March 2020...as they did back in 2008...when will we get back to a free market economy again?
How long this extreme boom-bust cycle can continue...who knows?!
How it will affect RE when the piggyback has limits again...we shall see!
Interesting read. It seems that you're well balanced but that you're leaning at least slightly toward technology facilitating booms more than busts. If that's true, the question of sustainability and connection to fundamentals emerges for me as it always does with respect to other writing on asset bubbles. I also wonder if the speed itself insulates against poor decisions making. I don't think it does and the stock market demonstrates this well, I think. This in turn brings me back to the sustainability question. Appreciate your thoughts.
Excellent article. I would add availability of funds. Two points: First, mortgage processing is now faster, some lenders can close in 30 days. And given how much information is available, it is more likely to be a successful process. Second, there are many non traditional sources of cash. SoFi for example disburses loans of up to $100K in 48 hours. Similar timeline for a 401k loan. This allows someone to see a house they like online on a Monday, and get the keys by Friday. The result is additional acceleration of the market.