bligh007 What does Russell say now?, page-20

Good advice (or at least, it accords with my view (and hope) about the housing outlook). I became bearish on the Aust housing outlook late last year and sold in February - now renting with a 2-3 year view for re-entry.

This was based on my view of our economy's fundamentals in general and the investment housing market in particular. BUT, its still a risky approach to take as you are essentially punting with a large portion of your wealth - given housing is a very significant and lumpy investment for most consumers and that there will always be something from left-field that will upset your 'median' forecast projections. On average you might be broadly right but on a one-shot basis you can be terribly wrong.

I, like many others, expected interest rates in Aust to be about 0.5% higher by now than they actually are. So my expectations about the future are continually being remodelled - but that's what forecasting is about. You're always going to be wrong, its only a question of by how much.

Cheers

OG