I gotta make this comment. Why are there so many on piggington.com saavy enough to see the crash in real estate prices, yet they don’t see how stock markets will obviously be negatively affected by the real estate bubble imploding? I don’t understand why so many on here are holding long positions in stock markets.
Some of us have used balanced portfolios for 10-20-30 years and expect occasional periods of -20% in our stocks. Some of us have been through several trying economic times and know that we don’t know everything and simply balance our bets based on long-term trends.
Some of us remember the recessions in the 70’s, stagflation, the double-dip recession of the early 1980’s, the crash of ’87 the dot-com bust of the 90’s, and countless other interruptions. Yet, still we have managed to build up a decent nest egg despite all these problems thanks to our friend named diversification.
Some of us don;t expect a 1930’s style depression.
Some of us believe that we cannot predict the future with 100% certainty and want to hedge our bets. Some of us have no problem holding negative bets against housing and positive bets on certain business sectors in the economy and negative bets on others.
And then there are those of us who are just too lazy or busy to adjust our portfolios (me) … and by being lazy often come out ahead of those who trade more often.
