A flood of money is flowing into “hard” assets, including commercial real estate and gold, driving up prices of the former to levels that now can be viewed as overvalued. The result is a “low interest rate asset bubble.” If interest rates continue to fall, people will continue with this behavior and real estate values (and gold prices) will continue to rise. When, not if, interest rates revert to the mean, high real estate values will fall. FULL ARTICLE |