Buying real estate right now is the stock market equivalent of a crowded trade. So many people are purportedly successful real estate investors with a significant number of these individuals holding several properties (positions). The amount of leverage is sometimes astounding.
Reminds of the story of the 1929 Stock Market Crash when the shoe-shine boy was giving stock tips:
Quote:
JOE KENNEDY, a famous rich guy in his day, exited the stock market in timely fashion after a shoeshine boy gave him some stock tips. He figured that when the shoeshine boys have tips, the market is too popular for its own good, a theory also advanced by Bernard Baruch, another vested interest who described the scene before the big Crash:
"Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day's financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929."
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WHEN THE SHOESHINE BOYS TALK STOCKS IT WAS A GREAT SELL SIGNAL IN 1929. SO WHAT ARE THE SHOESHINE BOYS TALKING ABOUT NOW? - April 15, 1996
Enter at your own peril, because psychology could change rapidly, signalling a rush for the exits. All IMO of course.
Kev