Is the predicated future down turn in the market, not already priced in?

It's very popular in this sub to bash on property rising (which I agree has been comically ridiculous since 2018), but I find it fascinating that barely anyone makes similar comments when sharemarkets are also giving crazy returns despite underlying earnings not matching the market euphoria.

I think this is mainly because investing stockmarkets is seen more in the area of "pure finance" which many don't engage in, while the housing market is something people are forced to engage in whether they like it or not.

I'm sure there are many people who ended up in r/ausfinance after looking at the housing/rental situation and thinking "wtf is this BS" but if you can't buy into the stockmarket that is irrelevant for large swathes of the population.

In general people will get exceedingly pissed off and demand action if:

  1. The price of shelter is "too high"
  2. The price of food/water is "too high"
  3. Crime is too high

For most other things, people will just change the channel.

/r/AusFinance Thread Parent