> But it does break the premise "but so does the cost of shelter." There is an advantage to sell while it's a seller's market and rent, while doing the opposite while it's a buyer's market. That's leverage that breaks this premise.
Hedged is never optimal but it should never be disastrous either.
You can often profit from unhedged speculation. If you can successfully predict the market you have nothing to gain from hedging. That you can do it profitably and possibly reliably doesn't make it hedged.
>> "You might do better renting but you don't have the future right to occupy that house at any cost."
> This thinking is one of the key reasons why it's so easy to make money off of real estate. It seems sound and logical, but it's fear based and irrational.
This thinking may be based on fear and suboptimal in terms of dollar wealth outcome but that doesn't necessarily make it irrational (stability and security have real value to some people) but you are right that it creates opportunities for those seeking profit.
The Steve Keen / Ponzi finance comment was in agreement with you.
Hedged is never optimal but it should never be disastrous either.
You can often profit from unhedged speculation. If you can successfully predict the market you have nothing to gain from hedging. That you can do it profitably and possibly reliably doesn't make it hedged.
>> "You might do better renting but you don't have the future right to occupy that house at any cost."
> This thinking is one of the key reasons why it's so easy to make money off of real estate. It seems sound and logical, but it's fear based and irrational.
This thinking may be based on fear and suboptimal in terms of dollar wealth outcome but that doesn't necessarily make it irrational (stability and security have real value to some people) but you are right that it creates opportunities for those seeking profit.
The Steve Keen / Ponzi finance comment was in agreement with you.