How To See A Market Turn Coming
We are currently in a real estate boom and most people would not dispute that. It is good to learn from history as to what is coming in the future. This holds especially true in market cycles as we seem to make similar mistakes over and over again. The things to look out for in a topping market are as follows. In 2008 there were clear indications on stock charts showing massive volatility leading up to the crash. For chart readers, they could see indications of a looming turn all over the charts. In the real estate market, money was flowing too easily. When people that should not be getting bank money are getting bank money, it means those people are going to mess up with that money. If enough people are given that kind of money, it has an impact. Common sense was missing all over the world. Our entire country was in a state of euphoria and people were living way out of their league and beyond their means. They could do this because of the easy money they received from banks and then coupled that with living in an unsustainable lifestyle that was being supported by the temporary blip of money from things like lines of credit or unsecured lines. We don't know exactly when the next turn is coming but we are near the top of an upswing. It is good to see the signs and be aware of them. Continue to make money on the way up but be prepared to protect your money when the signs are overwhelming.
Ian Walsh
215.839.3271
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