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.
Chicago limo Skokie ..Has your broker been calling you recently with the "great... Read More
As an investor you will want to check out any... Read More
I was recently interviewed for a press release through a... Read More
We have two candidates for president that have really different... Read More
Many people would like to diversify their portfolios to expand... Read More
Mutual fund investing is a lot like Thai cooking. Everyone... Read More
The debate rages all over Eastern and Central Europe, in... Read More
To begin, you might look at playing the stock market... Read More
Never lose money in the stock market again. Yeah, I... Read More
Wouldn't it be nice if you were only in the... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
The trading method you employ to approach the stock market... Read More
'Sector funds are too risky.' 'I doubled my money with... Read More
There is a famous cliff on the ocean in Acapulco... Read More
Congress recently passed another new law that is supposed to... Read More
The Shadow knows. Remember him? It seems a shadow has... Read More
The stock market often closes a week in the middle... Read More
Whenever I see mutual fund comparisons in the trade publications... Read More
In November of 2000 when the NASDAQ was trading at... Read More
Where is the beef? Or maybe it should be where... Read More
On November 17 I bought 7 different mutual funds and... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
The single most expensive stock market trades are those made... Read More
We need a rabbit!This was a pretty horrible week for... Read More
If you haven't heard of the technical indicator with the... Read More
limo O'Hare Bonfield ..How many times has this happened to you? You're at... Read More
For the last few weeks we have seen the stock... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
"Buy and hold" is one of the most heralded investment... Read More
In November of 2000 when the NASDAQ was trading at... Read More
Most stock traders know that momentum trading can be a... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
What a great statement!I just heard someone use it in... Read More
The thinking process of the brain relating to the... Read More
Are you one of those many people who dread reading... Read More
Now that you have some money burning a hole in... Read More
Let's hope you did not have any of the Enron... Read More
What does it take to be a stock trader? It... Read More
On the 40 year journey through the turmoil of a... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
Every stock market investor faces one primal enemy. An enemy... Read More
'Sector funds are too risky.' 'I doubled my money with... Read More
It depends on your level of understanding of the market... Read More
Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More
When the stock market is going up and all your... Read More
Most advisors will tell you they can beat the market.... Read More
There are many good penny stock investments available, which could... Read More
In a previously written article, we expanded the use of... Read More
The Surgeon General of the United States says that smoking... Read More
There is nothing more exciting than finding an undervalued stock... Read More
Stocks & Mutual Fund |