BAD NEWS FOR THE MOTHER OF ALL BUBBLES

in #mgsc6 years ago

Hi ,
Kumar here hope you well !

more bad news for the mother of all bubbles , what i called the property bubble or the real estate bubble and of course in particular we are talking about the LONDON property bubble , which of course on the brink of collapse.
In fact i'm gonna show you what actually this chart here is telling us , a massive massive slaughtering of the most share prices of real estate and building firms in london

Screenshot (316).png

In fact , i'm gonna show you what this chart is telling us here , lets take a look this picture first .

Screenshot (321).png

As you can the the peak in house prices in London before 2008 market crash was around £300K and you can clearly see where are they now , in fact in 2017 the peak was just around £500K in other word just half a million pounds which in US dollars around $750K .
Now ,
the fact is that a lot of what's been driving , i mean the driving force behind is was off course foreign investors. was this peak actually is not by the domestic buyers ? NO !
a lot of this done by foreign buyers , foreign investors. A lot of wealthy, big money investors from russia , middle east pouring their money into the UK housing market, into the london property market as a source of stability but off course that stability is now evaporated and i'm sure you probably know why it's evaporated.

the article from the telegraph just recently...........

Screenshot (333).png

It's a negative equity time bomb for banks as baby boomer cash in housing wealth. so what's been happening is not only baby boomers cashing in their house wealth but also , we also know this we are pro braxit or against brexit, doesn't matter it's without a doubt the referandom and talks about the UK leaving the EU has brought a lot of uncertainity . It's doesn't matter which side you are you supporting the brexit or not.
You have to admits this there's tremendous uncertainity , i mean this whole thing is becoming a mess no body what's going to happen here in UK and don't get wrong here is guys love UK , i love London but it's undoubtable no body know what's going with brexit , nobody know what kind of deal UK gonna get .
will it be a hard brexit or soft brexit ??

Screenshot (336).png

Believe me on this that foreign investors are leaving the UK market , they are dumping their investments and moving elsewhere and who can them ?
for example take a look on the price of foxtons and you know that foxtons is the majors firm here is UK..............

Screenshot (337).png

Look there share price just in the last few months look at this again , i mean this is slaughter without a doubt , it's just completely bleeding .
It's share price going down and down and down..............

what actually happening here in UK is real state is bleeding and it's actually in the bubble territory . Even you definitely got surprise to read that some of the economist predicting that the real estate market will drop 40%.
But to me it's little harsh to it's take a correction upto 10-20% of correction .
well i'm not pessimistic as they are , i thing we gonna see a modest drop and finally you can see mine calculations and charts here...............

Screenshot (342).png

if it drop down 40% it will massive and indigestible for sure and well if you are investor or a long term investors certainly you would want something like that. RIGHT ??..............opportunity coming ....

Thank you very much

INDEED!

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