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To: baseball_fan
former Web entrepreneur

who's about to become a two time loser. The final stage of a bubble is investor speculation. As the economy improves and the stock market starts back up, interest rates will go up and housing values will go down.

There are certain losers who get suckered into fads at the peak. You can get rich doing the exact opposite of what they do.

7 posted on 03/05/2005 8:56:24 AM PST by Reeses (What a person sees is mostly behind their eyeballs rather than in front.)
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To: Reeses
There are certain losers who get suckered into fads at the peak.

I'm no investment genius, but when the NASDAQ hit 5,000, I moved all my 401k holdings to cash. Didn't lose a dime. I just sensed that fools were rushing in. I even remember top "investment advisors" on TV saying that the NASDAQ, "was going to 10,000!" B.S. an inner voice told me. And I bailed. You're absolutely right. The house speculation fad is for suckers.

8 posted on 03/05/2005 9:03:50 AM PST by ExtremeUnction
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To: Reeses
There are certain losers who get suckered into fads at the peak. You can get rich doing the exact opposite of what they do.

I wasn't in a position to jump into real estate years ago at the beginning of the boom. I would be now, and every recent "new home owner" is encouraging me to do so. Listening to them reminds me of excuses I heard at Nasdaq 500.. ("It's different this time..," etc. ad nauseum). Articles like this are a further indication that it is almost over.

I'd like to know how to profit from the coming Real Estate bubble burst. Any ideas?

I've been biding my time, knowing full well that I spot coming trends too early, which hurts me. I'm ready to start averaging into some type of bet against real estate.

Short of interest rates and REITS (which I don't believe are single family housing focused), I haven't a clue on the best pure play investment. How can I "short" housing?

16 posted on 03/05/2005 9:58:41 AM PST by bluefish (Holding out for worthy tagline...)
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To: Reeses
Dude,

You are my hero for the day.

Real-estate is the last thing I would be buying now. Domestic stocks look better with the strengthening dollar and rising interest rates. I believe the market will get double boosted by foreign buyers hoping to cash in on the rising dollar, and long term bond selling. IMHO you would have to be a total "dumas" to invest in margined real estate these days :)


F H
57 posted on 03/05/2005 1:39:38 PM PST by Fish Hunter
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To: Reeses

this is true. except that when RE goes, it will take the banking system with it, as well as freddie and fannie.


65 posted on 03/05/2005 5:12:10 PM PST by oceanview
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