Besides being an over simplification of a complex and geographically diverse market, the information was outdated it as soon as he said it.Dropping commodity and energy prices have not caused the inflation that would have been expected in the past.It will be interesting over the next year to watch China will do about citizens exporting money as fast as they can.It is unlikely that the FED will want to pull money from other economies anytime soon.I am guessing the next FED minutes will say something like "We survived the rate increase, VERY slow ahead."

To answer your question, I would focus on a few main drivers: diversity of jobs, cost of living, and population growth.

A diverse portfolio will weather normal market cycles because those properties will be generating cash and building equity.

It was easy to see once you see the decline of the Big Three Automakers over the decades.The fact is that NYC is diverse in virtually all Verticals, making it actually a safer bet than a one trick pony town like Detroit was back then.So, as long as I am investing in a City and Neighborhood that is Diverse Economically, then I only need to worry about the the rest of the areas which could impact my portfolio.I'm an Expert in my very specific locality.

They also have a diverse product line for multiple campaign types.

If all of the underlying economic conditions are still strong (population growth, job growth, diversity of employment, etc...), then I would still invest in that location.

I wouldn't put 20% down on your new home, I would buy it FHA with 3.5% and invest your money in other markets that have more stability, diversity of industry, and future appreciation ahead of them.

I'm guessing since your house dropped so much in value maybe it's location doesn't have as good fundamentals (population growth, job diversity, etc.) ?? 

Understand the laws and take steps to protect yourself so your investment works for you rather than against you.I am sure my response isn't precisely what you had in mind, but I pride myself on providing a diverse array of information to any particular response.

I have no interest in single family homes or stocks especially lately with the market going wonky All my diverse friends are not too happy right now so I’ll just keep plugging away with what works for me