In a perfect world, prices would be set by supply and demand, and investments would cost around about the net present value of their future cashflows.

Stop laughing. Just look in any economics textbook.

Of course when you get to managing your own finances in the real world, you need to pay as much attention to politics as you do to dollars and cents.

This is a political market. Always has been. You have to play the refs, not just the game.

And the latest message is that housing is a privileged asset that will benefit from any number of political breaks and cover to make sure it does OK.

This, as already observed here, is hugely bullish for homebuilders.

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