The reason you see a lot of market comments is that a lot of the housing bears invest their surplus cash in various places that in the past and in the future will likely be back in housing, plus were bored in our rentals. Watching the housing market decline can feel like watching paint dry. Sure there are quite a few people who were shorting the builder and mortgage stocks but on average I bet most of us are not bearish on everything, just housing in certain bubble markets like Southern California. Do I understand why the market is hitting new highs while we are on the verge of a recession, no I don’t. I think the weak dollar helps but I don’t understand it all and thankfully I have some long positions and mutual funds that are doing quite nicely, still doesn’t mean I know exactly why. What I do know is that housing has less moving parts as was stated above, the fundamentals are simple for my small brain to grasp, so I can make predictions and they will likely come true. I still use a full service stock broker so you won’t hear me tell anyone what to do with regards to stocks because I still pay a guy to tell me.
