Originally Posted by EnRoute

When I started this thread in end Aug, the stock market was on the decline. A few agreed about an impending decline in property.

A few weeks ago the market rallied, then, there were comments that property will never crash (perhaps, only when his grandson graduates).

Can't you see that property is also sentiment driven. When people feel optimistic, they buy stocks and property. When they feel pessimisitc and fearful about the future, they stop buying (or they sell) stocks, and they don't buy property. Some they have to sell the property that they cannot hold.

Usually I am long property, Singapore is one of the best places to own a property given our political stability, wealth and small land area. But with the euro crisis, we are talking about entire countries defaulting. In my layman view, this means that assets that other countries thought they owned, become worthless! Instead of companies in trouble, we have entire countries in trouble. Its like money vaporising from the system. If the debtor cannot pay, that what is the true value of that debt owed? Zero. What asset does the creditor have? None. Suddenly everyone is poorer than before.

I'll be observing the stock market for a clue. Don't think that property will Always go up. It booms but it also bursts. The million dollar question is when ...