Just as two competing sides pull at opposing ends of a rope, the tension in the middle area takes on a life of its own …increasing and decreasing, shifting from one direction to another. A strange hum emanates. The phantoms have arrived; invading foreign entities, inexplicable blips in trends, justifications for the craziness, must-have euphoria (and depression), all a symptom no doubt of compressed anticipation from anxious buyers, locking horns in a psycological battle with sellers, and realtors keen to safeguard their livelihood. The truth will at some point unfold, and teams will swap shirts for the next round.
That’s to be expected. These markets are not completely rational. If they were, market psychology would tend to run relatively flat and it wouldn’t be as big a factor in the pricing trends as it is now.
The perception does influence the reality, and the media largely influences the perception. Every politician knows this, which is why much of politics is pure theater; packaged for public consumption at a 9th grade reading level. They all know that “feelings” count for more than facts.
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