Realty Bites

Q: Does your home price hype cycle theory apply to the stock market?

A: We’ll find out next week.

There was, in fact, a headline on the front page of The New York Times on Sunday, October 12: Those with a Sense of History May Find It’s Time to Invest. To my way of thinking, this is the rough equivalent of The Worst is Over. As you know from my previous post, when The New York Times reports the worst is over, the worst is just beginning. It is entirely possible that the stock market continues to drop sharply next week.

Consider another unattributed article from the Times on the same day. This one was quite clever, comparing today’s news to actual quotes from 1929, just moments before the stock market crash. Here are some excerpts from the piece:

From a “Wall Street Analysis” by Thomas C. Shotwell in “The World Almanac for 1929”:

The market is following natural laws of economics and there is no reason why both prosperity and the market should not continue for years at this high level or even higher. MORE →

C’mon kids. In my very first post I invited you to ask questions, let me know what topics are on your mind. What are you waiting for? Don’t be shy. As anyone who knows me could tell you, I have plenty to say. So, what would you like to hear about? Lay it on me, string bean.