Deke's Investment Blog - November 21, 2016

The election of over and Donald Trump is President elect. What’s happening in the real estate market and stock market? In the 7 business days following the election some $44 billion has flowed into equity funds (ETFs) in the stock market. Much of these funds have come out of bonds and into equities. The S&P 500 is near its all time high. Apparently the presumption is that Trump will cut taxes, increase spending on military and infrastructure and ease regulations. The market sees these things as good for growth, but maybe also bringing higher inflation and higher interest rates. 30-year mortgage rates have jumped to 4%, up from 3.6% 3 weeks ago. Higher interest rates mean higher borrowing costs for everyone. Commercial real estate here in Los Angeles remains strong. Demand for rental housing exceeds supply. Rents are still rising.