AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
How Much Does It Cost to Earn a Dollar?
A low interest rate environment can lead to a secular shift in the pay ratio for homes, but it doesn't explain away the existence of a bubble or preclude the possibility. The inverse of the interest rate and the price earnings ratio historically moved together. And when one gets out of whack like we had in the equity bubble in 1998, 1999, that's the symptom of the disconnect between two markets.