Quote:
Originally Posted by scholar
i disagree.
fundamental analysis is based on income ratios - if people cannot afford to pay for a flat with their income, then flat prices are constrained. and as hedgie has said, the fundamental ratios are alot higher today than they were in the past. hence, as one of the earlier posters have mentioned, fundamental analysis is a probability play and the probability of a 1996 situation is much much higher than a 1990 situation.
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you are assuming income ratio is relevant. you are only partly correct.
it's now very apparent that singapore is moving toward a pro-business elites-only global city. income of citizens is now IRRELEVANT. as long as the rich can afford it, prices will continue to go up. citizens are irrelevant. if they can't pay, they can always move to johor.