"My advice would be to diversify 25 per cent of your assets in real estate, 25 per cent in equities and 25 per cent in cash and bonds and 25 per cent in precious metals."

http://www.bi-me.com/main.php?id=55870&t=1&c=33&cg=4&mset=

That means that most New Yorkers would have to trim their real estate holdings (or get more realistic about its value).

yea.. I doubt he means buying RE at inflated prices like Manhattan and China

Very interesting report
thanx

I would differentiate between owner occupied real estate and an investor property. For primary residents one should not over-buy and stick to what they need(at least from a portfolio management standpoint). Once we're talking investor property, you have rental growth to make the equation work, which makes real estate more comparable to stocks and bonds.

My personal recommendation is to sit in Gold and non-financial high quality corporate credit and blue-chip big cap non-financial global equities. Bond and Currency markets are now so rigged by policy makers that I have no meaningful insights to offer, other than my bubble fears. Real assets are relatively attractive.

http://www.zerohedge.com/news/bob-janjuah-markets-are-so-rigged-policy-makers-i-have-no-meaningful-insights-offer

> I would differentiate between owner occupied real estate and an investor property

From a value as a investment perspective, sure. Problem is, if you have 200% of your net worth tied into your apartment, you should be hedging it if anything.

http://www.netcastdaily.com/broadcast/fsn2012-0213-1.ram

http://www.youtube.com/watch?v=ybvsZ7YjBL0

Riversider:

1. your assumption that rents will continue to rise might not be correct
2. perhaps in NYC, or Manhattan, but not everywhere in the US
3. according to the WSJ median inflation-adjusted income is now down to 1996 levels

4. that collapse is likely to work its way into rents sooner of later if conditions
re employment and inflation-adjudted income do not improve

Not sure about the advice about sitting in gold. Its price is inversely proportional to the health of the stock market (more or less, and with some lag). As the economy heats up, it will drop. There were huge periods in recent history where this was the case, and where gold significantly underperformed the market.

Just because it did well recently, does not mean it will continue to do so. In fact, it is probably the opposite (barring major world-wide economical catastrophes). The very definition of a bubble is rapid growth fueled by speculation. Helloooo Gold!