Muting this twetepic.twitter.com/egrOT7IMoe
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If stock equities are already leveraged at corporate level it doesn’t make sense to compare 20 PE to 5% cap rates because cap rates don’t include interest rate payment expensing like stock earnings do. Anyways, even if I was wrong about financial contagion, I still believe that
Thé nature of leverage in real estate is better than that of equities because you’re not going to get margin called in RE. So there are plusses and minuses for each but it seems to me you can turbocharge your wealth faster with the RE.
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Get margin called pretty quick if your cash flow doesn’t cover debt service
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True but that’s kinda different because you don’t also get “margin called” for a volatile stock price that is continuously getting “marked to market”.
End of conversation
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