The market reaches equilibrium at approximately 6 months of housing supply, with an even balance between supply and demand.
When the market is not priced correctly knowledgeable investors will quickly come in and either buy or sell to the point where
the market reaches equilibrium.
Not exact matches
And if we've learned anything over the last few years, it's that expected returns do not equal realized returns, and expensive
markets don't have to crash in order to
reach some sort of
equilibrium.
Of course, that final line — that there is a new, higher «
equilibrium valuation of equities» — is surely to remind some
market historians of Irving Fisher's famous line that stocks had
reach a new «permanently high plateau» on the eve of the 1929 stock
market crash which ushered in the Great Depression.
Now... one could argue that in the LONG RUN, if we lived in a world where
markets really WERE competitive, the shifting demand for clothes produced in China would cause Chinese workers wages to rise and U.S. workers wages to fall until some kind of
equilibrium is
reached.
It would appear the books
market has
reached an
equilibrium of sorts, with about one in three books being a digital one, and the rest being physical books.
Is it that the
market has not yet
reached equilibrium?
Through supply and demand
market forces,
equilibrium prices are
reached in an orderly and equitable manner within the exchanges, and world economies, and you, benefit tremendously from futures trading.
Most of the time they will make money, because there is enough informationless volume trading back and forth, that they can take a few losses when information hits the
market, and informed traders temporarily make money against intermediaries until a new
equilibrium is
reached.
Now, ceteris paribus, economics tells us
markets naturally
reach equilibrium.
The apartment sector has bounced back quicker than the office sector because supply and demand have
reached equilibrium, or are approaching it, in a number of
markets.