ARE YOU READY FOR PROPERTY RECESSION?
Do you have the knowledge and understanding of the financial implications in a recession? Are your assumptions correct? How do you measure up to the rest of people engaging in the property market today? We discuss these with the theme of recession in mind.
Telegram Polls about Recession
In Aaron's telegram group, he ran several polls recently to gauge the understanding of beliefs of the general public.
First poll: Does mortgage interest rates go up or down during a recession?
The results ended up 50:50, which is a surprise. Usually in a recession, mortgage interest rates should fall.
Poll 2: Will there be more supply in the resale market in a recession?
70% feels there will be.
Aaron's opinion is: No. Volume is always at an all-time low during bad times, as people do not buy. There are also other reasons why it's not true that supply will increase, as people are not selling. Reasons for not selling include rental yield, holding power of owners, and the fact that homebuyers are not overleveraged and have no need to sell.
When recession hits, the holding power of homeowners allows for them to hold rather than sell their properties. The folks that need the money and thus would sell off their property is a very small group.
Poll 3: Is inflation an expected occurrence from since 2 years ago?
81% said yes.
The reactions to financial happenings has been of surprise but there are already many signs.
From the financial support across the globe, the unending war in Eastern Europe, the situation in China, these are all signs that point to inflation. Thus, the surprised reactions of people is a surprise, so at least it's good to see that participants in the poll do realise that the writing has been on the wall for a while.
The main lesson is to recognise the signs of the world and the true situations happening around the globe. Rather than believing what you hope to be true, recognising the facts allows you to predict accurately what is likely to happen in the financial markets and be as prepared as possible for them.
Results of the polls show that groups of people do lack the financial know-how to navigate the choppy waters of an unstable economy, so it's important to stay aware and careful. Are you ready for a recession?
Aaron discusses results of polls in his telegram group and how it links to the recession in the markets of the world.