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.
professional maid services Deerfield ..I would like to share with the reader an article... Read More
It looks like the market is ready to start up... Read More
What can I expect to make my first year of... Read More
You'd have had to be living on a desert island... Read More
Every day I hear from the "experts" on CNBC-TV and... Read More
There are so many kinds of work that needs to... Read More
I am taking the time to help others learn the... Read More
In one of my previous articles (Investing in the stock... Read More
A PEG ratio cannot be used alone but is a... Read More
Have you ever thought of investing? Do you have a... Read More
Day trading is all about making buy and sell decisions.... Read More
With the stock market stubbornly refusing to settle down and... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
Forget making a profit; instead focus on the income provided... Read More
On Friday or Saturday evening my wife gets a movie... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
I know there are a lot of you out there... Read More
In a previously written article, we expanded the use of... Read More
You must take the time once a month to review... Read More
You have decided to buy some stock or mutual funds,... Read More
Every broker and financial planner will tell you that you... Read More
This is a guide to the different types of mutual... Read More
A few years back ? it seems like an eternity... Read More
Duck! No I don't mean a quack, quack. I meant... Read More
In today's volatile and confusing stock markets everyone is searching... Read More
quick home cleaning Lake Forest ..Hedge current portfolio positions and gain access to capital resources... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
As a novice trader, you'll often feel the need to... Read More
How many times have you said to yourself, "I'd like... Read More
It is finally catching up with them. The brokerage companies... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
Have you ever thought of investing? Do you have a... Read More
With all the bad news that has been dumped upon... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
Are you attracted to the idea of being in control... Read More
Let me start by saying that...Most online brokers do not... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
If you've ever flipped on the television to CNN Financial... Read More
A few years back ? it seems like an eternity... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
Most stock market traders have a favorite technical indicator.The one... Read More
"If you don't know where you are going, any road... Read More
Quick, look out the window. It's raining. No, the sun's... Read More
During our travel down life's path we come to many... Read More
Now that you have some money burning a hole in... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
Options trading can increase the profits you make when trading... Read More
Having lived aboard a sailboat for 2 years I was... Read More
One of the most believed bits of conventional wisdom from... Read More
Because you don't feel too sure about which stock or... Read More
Stocks & Mutual Fund |