There’s really no point in trying to go against the trend. We’ve been it twice in the last 10 years, psychology run the show, the the fundamental. People was calling bubble several years before the .com bust as well as this RE bust. So given that it always run a few more years past the point where price gets disconnect from fundamental, what make this time any different? Sure those stocks that davelj listed prove his point, but I can very list a different list of stocks like GOOG, MSFT, AAPL, QCOM, HERO, VLO, XOM, etc to prove that there are other companies who are making great profit, better than last year and better than expectation. I don’t see the point is fighting the trend. If you keep your eyes open and don’t let yourself get caught up and have an exit strategy, you can take advantage of the run up as well as the run down. It takes many years to finish a cycle and turn around, so it’s better to be follower of the up/down trend than trying to guess the top or bottom. With an exit strategy, you can lock in your profit when the market turn.
Also, remember that although tech crashed hard in the last crash, RE, GOLD, and OIL all rallied hard. I think that investment money have to go somewhere, they don’t just sit idle in CD. That’s just my theory, we’ll see if it’ll happen during the next down cycle.
