Quote:
Originally Posted by ah-kay
Spdrun - Stock market does not work like that. You need to hedge it if you think the Market is going to go down. When the Market does go down big time, you would be too afraid to jump back in as you do not know WHEN is the bottom. Same for Real Estate - no one knows it is bottom until it re-bounced, then it is too late. Just look at RE, no one calls bottom as yet.
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With RE, I don't care about calling a bottom as long as I can lock in loan for at least 10 years and get a return that's 3+% higher than that loan rate. I'm interested in "buy and hold", not in speculative flipping. Landlord, not speculator! And I'm calling a bottom in SD right about now. Inventory has dropped -- so prices will either start going up or at least stay steady. There may be more foreclosures dumped on the market (there are a LOT of trustee sales being scheduled, it seems, but that's unlikely to be worse than 2009/early 2010, and there are a lot of investors geared up to buy them, unlike then).
As far as the market, nothing wrong with getting out when it's high, waiting for a 10-15% dip, then getting back in. With any cyclical wave, chances are there will be a point higher (and lower) than