Consider back in 2004 everyone was buying. It was stupid to have money in the bank since home prices were rising and waiting just meant paying more later. Many looking to get rich bought not one, but two, three and four homes. Consider now. Nobody is buying. It's stupid to have money in the home since mortgages are under-water and buying takes away financial flexibility and waiting just means... [more]
Consider back in 2004 everyone was buying. It was stupid to have money in the bank since home prices were rising and waiting just meant paying more later. Many looking to get rich bought not one, but two, three and four homes.
Consider now. Nobody is buying. It's stupid to have money in the home since mortgages are under-water and buying takes away financial flexibility and waiting just means paying less later. People are fearful and deleveraging.
Both thought processes were very much driven by the moment and not a long term view. Long term means looking back 50 years and looking forward 50 years and seeing relative valuations.
Seems this will never change. Today we see bubble like behavior in Social media stocks, probably the same type of people who bought internet stocks ten years earlier.
And today stocks are better than real estate since everyone knows how much they went up since 2008, forgetting how much they dropped prior to 2008 and the stagnant decade of 2000-2010.
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