What you’re seeing here is people pulling their money out of stocks and bonds and putting it into hard assets. Question for the interested student. Does anybody know why the people who can are doing that?
My guess: the Fed has been pumping up the Stock Market for years now. It is due to crash. In fact, many millionaire and billionaire investors started pulling out months ago.
Retirees are living off their investments, and hoping more people who are still working will pour more and more of their ever decreasing disposable income into stocks, bonds, IRAs, and 401Ks. But at some point, the market will realize this is unsustainable.
” Question for the interested student. Does anybody know why the people who can are doing that?”
They see huge inflation on the horizon?
You have some good answers already. However their is a lot of discussion about should their be another major "correction" their would be the engulfing of all qualified assets into what will be SSI on Steroids in an equity swap to that people could be made whole. Why have an annuity with Government when you can still hold your own asset would be a reason.
Also if their is an actual gain on high end homes, if they stay in it 2 years, their is 500k in Cap gains tax free.
This would be an extension of the pump and dump we saw from "DINK's" between 2000 and 2006 as the over 50 crowd was buying and living in it for two years and flipping it, in the large / high dollar McMansions market and other types of high end homes...