hardie siding cement board siding installing vinyl siding install vinyl siding bloomingdale hardie plank siding .. Chicago Drug testing

Lemmings Are Gathering

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.

In The News:

Pension Plans

If you have a pension plan at work you will... Read More

Who Knows?

The Shadow knows. Remember him? It seems a shadow has... Read More

Maximizing a Stock Market Investment

Maximizing a stock market investmentThere are several factors an investor... Read More

Advisory News Letters

Several times each month I am solicited by various market... Read More

The Exclusive Club of Large Caps

Picture one of those clubs where only the real heavyweights... Read More

Making Outsized Returns in the Stock Market - Using the Dow Theory

The Dow TheoryCharles H. Dow... Read More

The 10 Commandments

Wall Street has been preaching for years and years to... Read More

Long Term Investing

In his wonderful book, 'Multiple Streams of Income', best selling... Read More

Look Out The Window

Quick, look out the window. It's raining. No, the sun's... Read More

Stock and Fund Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

Stock Market Investments

If there is one term over-used when talking about making... Read More

The Value of Stocks of a Company

The debate rages all over Eastern and Central Europe, in... Read More

How to Maximize Your 401k Mutual Fund Returns

When it comes to 401k's there is an overabundance of... Read More

Fools Gold

The stock market has been in an up trend for... Read More

Series 7 Exam

What is the Series 7 Exam? If you... Read More

Shorting Stocks ? The Basics, Part II of II

After the publication of the first part of this two... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer... Read More

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try... Read More

How To Pick A Mutual Fund

Mutual funds by definition are a mixed bag of stocks,... Read More

I Love You, Warren Buffet

Sometime around 1980, can't remember exactly, there was a flight... Read More

Complacency

During the month of January the Dow Jones Industrial Average,... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

Discipline

One of the great "secrets" of successful people is discipline... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

broken street light led street light Pete's produce ..
broken street light led street light Pete's produce ..