Contrarian Indicator

[Tom Juhn]

It seems the discussions I have been in lately has been with individuals asking how they can start investing in real estate. They have heard all they have to is put 25% down, put a for rent sign out and collect. That their friend/uncle/brother are doing it and they are making money. These people should not be investing in properties. They have no clue.

In addition, I have read articles where huge hedge funds are starting to invest in sfh and mf by purchasing thousands of them at one time.

These scenarios remind me the days of the internet stock bubble. You could not go anywhere without hearing people talking about how much money they are making buying net stocks. People would EXPECT returns of 20-30 a year on their stocks.

Are these good contrarian indicators that markets are overheated and time to cash out?