Well, when I said “exploit” it, I really just meant to be aware of what is going on and not fall into the same trap. That is what Charlie was saying because even in his lecture, he says that he himself is susceptible to this manipulation as well. I was hesitant of using the word “exploit” and in hindsight, I shouldn’t have.
I have been waiting for 4 years to buy a house here in SD. Back then, I didn’t want to become a victim of social proof. That $530k house is now $820k. It’s still up a good $300k, 2 years after the peak. My lesson learned was that while the herd creates a bubble, it’s still possible to make money in the bubble, as long as you get in early enough. I just need to go in with eyes wide open.
I won’t follow the herd into the dead cat bounce either :-). Once everyone thinks that real estate stinks, then I’m going in for the kill, hehe…
Jeeman
