Before they go over the cliff to their destruction these little furry ones get together for a party and celebration. Each tells the other how smart he has been with his investments and buying and selling of stocks and real estate.
Wait a minute. Did I say lemmings? I think I meant investors. It seems they had that same party in January 2000 and it was a doozy that lasted for several months. A great time was had by all. They did not have one in 2001 as membership dropped off. Nor again in 2002 and by 2003 there wasn't anyone around at all.
The lemmings (oops, investors) had gone over the cliff. And they were such nice little guys too. The few at their party who tried to preach caution were drowned out with loud squeals that the market was going to 40,000 or maybe higher.
This new crowd said it will never happen to them as they are not going to put their money in that risky stock market. Oh no, there is a really safe investment that always goes up ? real estate. There is only so much land and no more is being created. The population is expanding so the demand will continue and prices can only increase.
Even for the novice speculators there is a place to make big bucks. They are joining real estate clubs just like the old stock market investment clubs to which they have previously been members. Put in a few thousand and watch it grow as the real estate market keeps going up and up. These investors know they are on the verge of great expectation that will mean wealth. Wealth without work or effort. Maybe they forgot how much they lost from the expert advice in that previous investment club, but everyone knows real estate is a sure thing.
A stock investment is just a piece of paper, but real estate you can feel the dirt, walk through the building and slam the doors. That's solid. You can't miss. With each deal they recognize how they are getting smarter and smarter. Hurrying, doing nothing constructive to make their fortune. Just like in 2000.
For more than a year the professional traders, insiders and large institutions have been quietly selling their stocks and I am now beginning to hear of sales of major properties. Just because someone has a lot of money doesn't mean he is smart. These groups can be as wrong as the little investor.
Real estate may continue to be an excellent investment, but speculation in real estate can be hazardous. If, or maybe I should say when, this market stops going up or even starts down it is very hard to sell a property. Payments must be made and upkeep maintained. It is possible to rent out some houses or offices, but the income ratio today does not allow a breakeven to costs.
These real estate lemmings don't seem to care. They are gathering in larger groups and are working under the greater fool theory.
This is a time for caution as it was in 2000 for stocks. You don't want to go over the cliff again.
Copyright 2005
Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter to receive his market letter for 3 months at www.mutualfundmagic.com to discover why he's the man that Wall Street does not want you to know.
efficient cleaning crew Lake Forest ..If you're a normal human being, your need to feel... Read More
If there is one term over-used when talking about making... Read More
You have decided to buy some stock or mutual funds,... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
For years investors have been taught to look into the... Read More
Every day on CNBC-TV they show a 200-day moving average... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
There is a current movie entitled "Eternal Sunshine of the... Read More
In 1960 an engineer working for a watch company in... Read More
There has been great condemnation recently because China has been... Read More
After finding the price of a particular stock, usually the... Read More
The trading method you employ to approach the stock market... Read More
Before we get into all the good news out there,... Read More
Intervention. Now don't let that big word scare you. The... Read More
Hello Inflation, it has been awhile, I see you on... Read More
If it walks like a duck, quacks like a duck... Read More
On the 40 year journey through the turmoil of a... Read More
Let's go into the details of why non-indexed mutual funds... Read More
I am taking the time to help others learn the... Read More
There is a famous cliff on the ocean in Acapulco... Read More
I use the P/E ratio as a secondary indicator for... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
That sounds like good advice doesn't it? Don't lose all... Read More
A stock market index is a statistical measure of changes... Read More
The Dow Theorycharles h. dowcharles h.... Read More
green cleaning service Deerfield ..Who are the successful investors?There are those who follow the... Read More
Everyone who follows the financial news has heard of mutual... Read More
What! Me worry?Many of you remember the cover of MAD... Read More
Trading is a fascinating activity.There are so many layers to... Read More
How do you make money without picking tops and bottoms?I... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
Mutual fund investing is a lot like Thai cooking. Everyone... Read More
The World Bank claims that some two billion of the... Read More
Where is the beef? Or maybe it should be where... Read More
Did you know you can make money (and a lot... Read More
If you want one.And I don't recommend any broker with... Read More
I love roller coasters. The steeper the better. High and... Read More
Let's hope you did not have any of the Enron... Read More
It is commonly reported that the stock market averages about... Read More
Are you one of those many people who dread reading... Read More
The fight continues to rage among traders who use technical... Read More
Index Fund Trading can be one of the most profitable...or... Read More
The demand for world oil is increasing while world reserves... Read More
When you invest in the stock market for ever-increasing cash... Read More
It looks like the market is ready to start up... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
I use the P/E ratio as a secondary indicator for... Read More
If you have not back tested your trading system, you... Read More
Let's go into the details of why non-indexed mutual funds... Read More
Stocks & Mutual Fund |