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.
Indian Head Park taxi to Midway .. Lockport Chicago limo O’HareThe thinking process of the brain relating to the... Read More
Mutual funds were created with the idea that one person... Read More
The stock market has not been very kind to your... Read More
When will the stock market stop going down and start... Read More
Question: How does it get better when it gets worse?Last... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
If you don't know where you are going any road... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
This is a guide to the different types of mutual... Read More
Do you own any mutual funds? In an IRA or... Read More
Mutual funds were moderately successful in creating a presence in... Read More
One of the great "secrets" of successful people is discipline... Read More
It is difficult to make money in a bull market,... Read More
The fight continues to rage among traders who use technical... Read More
If you haven't heard of the technical indicator with the... Read More
I continually hear from economists, talking heads, other market letter... Read More
Day trading is all about making buy and sell decisions.... Read More
Mutual funds are doing more and more to discourage investors... Read More
Starbucks earnings are up again and so is their stock... Read More
I constantly hear the talking heads on CNBC-TV, the radio... Read More
In November of 2000 when the NASDAQ was trading at... Read More
As an investor you will want to check out any... Read More
First let's see what protectionism is. According to Mr. Webster... Read More
You've decided to try your luck at trading stocks or... Read More
This is a rather simple strategy with which I am... Read More
Bonnie Chicago charter limousine ..The stock market can present you with a lot of... Read More
There are so many kinds of work that needs to... Read More
Have you ever thought of investing? Do you have a... Read More
One Saturday morning, while he was sitting at his computer... Read More
What are you thinking when it comes to your no... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
If you go to Haiti or other places in the... Read More
As a novice trader, you'll often feel the need to... Read More
The Dow Theorycharles h. dowcharles h.... Read More
What is leverage?Here is a definition of leverage from an... Read More
In today's volatile and confusing stock markets everyone is searching... Read More
Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More
Every year I go to the Money Show in Orlando,... Read More
The trash business in its efforts to cook their books... Read More
If you don't know where you are going any road... Read More
If you have been dealing with mutual funds for any... Read More
A few years back ? it seems like an eternity... Read More
Before you embark upon a journey of trading stocks or... Read More
Outlined below are some of the advantages and disadvantages of... Read More
Because you don't feel too sure about which stock or... Read More
This article describes the model of a natural relationship between... Read More
I have watched my cat play with a bag of... Read More
It seems that every day I turn on the TV... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
The following are a list of nine things you want... Read More
Stocks & Mutual Fund |