I know one person that predicted the S&P 500 would drop to 600 by Spring 2007 and that housing would drop by 50%. The first prediction has brought her to true "Yahoo" status. I'm thinking the second may only solidify that status, but we won't know for a few years. Being neither a disgruntled renter, a recent purchaser, nor a highly leveraged owner, I see this from a different perspective – I see yahoos on both sides – those who keep calling the bottom and those who expect massive drops any day now. The frog is starting to boil.
Exactly. The problem that I see some folks here try to "rationalize" things to o far to an extreme. Markets are pretty much irrationale imho, both in an up market and a down market. You get enought people to say the sky is falling, the sky will fall to some degree. You get enough people to say the stock market is "fairly valued", then people with think that's the case too. This country never makes rational decisions based on reason and logic. Just look at our president and who put him in office. From a technical analysis, the minority of people who are astute and feel that things don't make sense are just that, a minority. But put it this way. If you are in a room with 30 morons who thinks the sky is green, and you're the only one that knows it's blue, it's pretty pointless to debate it.
