DaCounselor, as I said before, people make the mistake of thinking that an investment or strategy which has worked before will continue to work, even when the conditions that allowed the good performance have totally changed. People also tend to extrapolate current conditions into the future.
Your advice of buy and hold real estate is bad advice for today’s times. You were fortunate that you were able to attain rental properties before this big bubble started, but from your comments and your own admission, it was pure luck and not any financial planning or genius on your part. You are also in complete denial of housing cycles, or you just don’t understand them.
If you are so sure about your real estate outlook, my ramblings should be either annoying, boring, amusing, or a challenge. Maybe you are the best person here to answer the question of why you are angry, and give some insight into the topic of this thread: why do people get angry when you say their house can lose value?
I’m sure everyone on this forum, and I especially, are eager for your thoughts on the future of San Diego housing. Do you think the next bubble will be even bigger than this one? Where will the money come from to fund it? How can housing prices go to 20x income, or 40x rental prices? In San Diego, in 2000, the price/rent ratio was about 13.5, and now we’re at 28.9. You think that in the future we will be at 40x rental income? That sounds impossible, but hey, you said the prices would go higher in the long run so the ball’s in your court if you care to take it. I look forward to your insights.
As far as my recession call, I was 1 or 2 quarters early. Let’s judge our results next spring, after the market has gone down, and see if those who rode it to the top were able to get out in time. Then we can see whether I made a mistake of earning 5% in CDs vs. your profit/loss by trying to hang on until the end.
By the way, a poster of similar delusion got mad at me too, last summer, and said he would still read piggington but never post again. I thought that was a whimpy response. If you guys think houses can grow to the sky and I challenge you, don’t run away, but tell me why I’m an idiot and you are right.