[quote=Rich Toscano]
I think he was referring to real estate fund managers? In that case, I don’t see them making that big a difference… if they are flipping then they just have to sell it to someone else, so that doesn’t increase overall demand. Maybe some are buying and holding but I doubt that’s a significant portion of the market.[/quote]
No, I meant stock/bond fund managers in gross generalized terms, not every single one of them. That same group where 95% of them don’t beat the market even though what they’re selling is investing in the market.
In general, the stock market, I should have been clear given my mixing of examples with the house flipping displays pretty solid group think. Not to mention the added bonus that so much trading is now just computer algorithm.
I’m old and distinguish between investing and speculating according the older amount of risk involved and the fundamental supports of the underlying ‘investment’.
i.e. Most rental property investments locally, recently are more driven by speculation on further price appreciation than fundamental evaluations of value. I say this not through detailed aggregate analysis, but through anecdotal review of properties while looking for additional properties where properties are listed and sell for prices where the gross rent without vacancy or expenses can’t cover the P&I on a 70% LTV at 4%.
I define that as speculating.
For the stock market, technical analysis, i lump into speculating, fundamental analysis I lump towards investing.
Or super nutshell, buying it because it’s a good company that will beat it’s competition versus buying it because people are buying it and it’s going to go up.
