Wednesday, October 29, 2008

Really confused


One of my theories on investing - and it is my no means an original theory - is buy when everyone sells and sell when everyone buys. One article like this won't make me rush to the auction house. A steady stream of them will.

Money shot:

The consequence for anybody who owns a home is that the reigning turn-of-the-millennium assumption that you could count on your house not only maintaining its value but providing a nice cushion that you could cash out for a comfortable retirement is no longer in effect.

It's almost as if the author is saying buying a home is a piss poor investment today. and that you would be wise not to buy anything for a long time. The time to sell real estate was right around when Time Magazine had a smiling doofus hugging his house on the cover. This was back when housing was going to double every 28 seconds and everyone would retire a la Donald Trump by the time they were 33 after flipping 18 Miami condos.

The time to buy will be when Time's cover will have that same doofus taking a dump on his house. That will be the best buy signal you will ever have.

We're getting close. Not there, but getting close.

2 comments:

Unknown said...

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Written on behalf of PNC Bank, Member FDIC

Ed said...

An example of why I have comment moderation on.