marion, how can you be so sure that price will fall below fundamental? There are many forces at work that will affect the price. I’m sorry but I’m not smart enough to account for all the possibility. Your IF case is just as likely as IF price drops to fundamental level and stay flat for a long time and let inflation make the real price undershoot the fundamental. Or IF the FED keep on dropping interest rate, which might then cause a massive inflation and fundamental catch up to price instead of the other way around. There are infinite ways we will get back to fundamental. But all I know is that when price reach fundamental level, that’s a decent time to buy if you can truly afford the place. Do you see my recurring argument yet? If not, let me restate it again, it’s all about fundamental. Also, did I ever say today price is at fundamental? Fundamental is different for different area. That’s why I say do you own calculation for your specific case.
