The stock market has been doing well for some time, the economy has been on steroids for a number of years and as we all know, housing has gone crazy since around 2001. There are very good analyticaly based arguments that all three are headed down, and common sense tells me that in these matters, when things have been humming for a long time they will eventually correct. All three are primed for a correction IMO.
When the economic news just can’t get any worse, home prices have crashed and people are still not buying homes, that will be the time to buy again. For money making trends, follow the initial adopters early and ride the wave up as the masses adopt. But the key is that you should hang tight through the final phase of overzealous buying, but immediatley turn contrarian before the herd decides to do the same. EG: I sold my home early this year at a time when most people still had faith that prices would slowely rise or level. In only a few months, the herd has now changed its psychology and it is too late to sell!
OK…so I am patting myself on the back. My point is that common sense alone tells us alot.
