Forecast of collapsing economy, what to think?

2 Replies

Hi BiggerPockets,

I came across this video (haven't had time to watch it through the end yet): https://youtu.be/oQJRGgTBn6w

The economist James Dale Davidson, who got famous from predicting the subprime crisis among other things, believes that the US economy is about to collapse in 2017 and that real estate will drop 40% in the next...six months!

What do you guys think of this warning? 

For me it seems too spooky to be realistic but apparently that guy was right several times in the past...

I would be curious to know your thoughts ;)

We are definitely due for another market correction. When it will happen, nobody knows. I suggest you check out the Real Estate Guys Radio Show podcast, they have some great insight last few episodes.

On the other hand, there is no need to panic. Make sure you are not over leveraged and figure out our personal investment strategy for when the market correction arrives. Also, these corrections are very market specific and just like in 2008, there will be markets where people will go and make money.

Cheers,

Damir

@Mylene Bel ,

There are many well known analyst predicted market crash in 2015 & 2016 also...

I see these analyst start predicting crash as soon as market is high.. so they will be successful in prediction... and market always go in cycle... if not today...in next few year market will go down.

I dont think anytime in history, real estate crash 40% in 6 month... not even in 2007/2008 crash... and that was biggest RE crash in last 80 years...

Someone said... "More money lost in speculation of crash then real crash itself..."

we all agree that market is high so we need to be more careful in analyzing deal ... but no one knows about market correction time frame... you can study Canada, Australia market... they are keep going up since last 15 years... that can happen to US..? yes, there are always possibility...

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