Quote:
Originally Posted by Nlkko
4444 is right for the most part. Price coming down to affordable level for the Joes perhaps a speculation but he is spot on on investment. Risk management is number one principle of investment and putting all your egg in an illiquid asset class is poor risk managment. And size matters.
Market is cyclical. Price will correct but from what level and when is a mystery. Again, when there is a lot of excitement is when to be cautious as it usually mark the "euphoria" state of the market, where the risk is the highest.
|
you hit the nail on the head - prices coming down is an unknown, exactly as prices going up is an unknown. prices going down are supported by affordability, prices going up are supported by eurphoria.
all we know is this: when prices go up unnaturally, they overshoot.
when prices come down in a panic, they overshoot.
when this happens, to what extent, no one knows, but it's going to be a fucked up ride (as it is right now) - you only win if you get off the ride with profits in your pockets.
bulls make money, bears make money, pigs get slaughtered. lots of pigs in vancouver...