Stock market and luxury

[maxlex]

Housing market here is the same.

Nobody gets loans unless they're with a 10-12% interest rate which is ridiculously high.

Our loan for the two tenant houses were at 4.2%


You can see young families moving into houses, renovating them, and a year or two later they move out again because they simply can't afford it.

Meanwhile the city is building new structures, new city hall, new fair grounds etc etc

It's fucked right now.

And in wich country is this Sir?,
I rember those rates of plm 10 percent here in The Netherlands from a very long time ago, I guess it was in the middle 70th, and the if I remeber well in GB you saw mortgage rates of 25 percent, so in four years you paid the whole debt of your mortgage!!!!
And the rates we see now have not been seen in plm 15 years
Its all quite scary

 

[Storm.]

And in wich country is this Sir?,
I rember those rates of plm 10 percent here in The Netherlands from a very long time ago, I guess it was in the middle 70th, and the if I remeber well in GB you saw mortgage rates of 25 percent, so in four years you paid the whole debt of your mortgage!!!!
And the rates we see now have not been seen in plm 15 years
Its all quite scary

Germany

 

[Cigar_Guy97]

I've been looking into starting some rental properties after this all blows over (my dad has an established rental company with 18ish houses). Rates from what I've gathered, looking online, and talking to him are somewhere in the 7.5% - 8.5% depending on the lender and credit score (south east USA). I am fairly young (26 at the end of NOV) but my dad is expecting a pretty large crash here soon. As Tesla said, the situation is quite different than 2007-2010 crash.
As for the stock market, obviously if the housing market crashes that will go as well, vice versa.
I started my ROTH IRA 2ish years ago and have been eyeing the company Iron Mountain (IRM) if anyone in here is knowledgeable on the stock market and well versed in long term investing, I'd like you to check it out and see what you think. They seem to be a pretty solid company with good financials and an attractive business model. Preformed quite well during covid, and have seen steady dividend increases and growth since they have been listed on the NYSE. Again, before I buy any of their stock, waiting for a pretty substantial market correction because I genuinely believe I will be able to buy at a better price!

 

[j-unit139]

waiting for a pretty substantial market correction

May happens, may not heard those sayings since I began investing in the stock market some years ago. There is never the right time, therefore I buy ETFs and stocks on a monthly base to leverage the buy in price. Even with COVID, component shortages and the recent drop after the Ukraine war, it was no rocket science to realize 7,5% yearly yield in the last year's. If you're ready to hold on for some years with consistent buy ins, there is no major risk and imo no reason to further postpone an investment chances are much higher that you look back and regret not having started to invest

 

[nunyabusiness]

I don't personally consider investing in luxury brands.

That's always the first spending cut by consumers when economic times get tough in the slightest.

 

[j-unit139]

First cuts by consumers are often made on high volume commercial goods (e.g. low to mid tier cars) while high end luxury products are still sold without interruption (e.g. Ferraris). Over last crisis, there have been still ways to make money and buyers for luxury products did not gone. However, luxury businesses value is not something substantial but more emotional. Therefore I also bypass classic luxury stocks.

 

[Karbon74]

I was referring to classic and dozens of years old european brands held by companies like Kering LVMH and Richemont...not passing fads like Supreme

IMHO LVMH will always ultimately grow in value over ten years, which is my investment outlook