Last week Federal Reserve Chairman Janet Yellen cautioned about the high level of asset prices. Central Bank policies are moving away from the easy money that helped fuel the bull market in stocks and real estate. Record high stock prices are supported by lackluster economic growth. The unemployment rate is now at a sixteen year low. Other analysts suggest the next US recession is a long way off and the current expansion is likely to break the 10-year record for longevity. Real estate in Los Angeles has other support factors, such as jobs and population growth and the Southern California juggernaut economy. It’s a good time to maintain a strong balance sheet, minimal leverage and a healthy return on equity.