I speculate that most LL's discriminate without even knowing it.    

But for one, you're speculating (gambling) and in LA the properties would have to appreciate to freakish levels to let you retire.

That being said, there are key indicators that allow investors to speculate on what will happen next in the market.The last market crash around 2007 can be visualized below.

Anything outside of the norm is for the most part speculation.

If you didn't own any other stock, would you buy a highly speculative, risky stock?

I agree that Nashville may be overpriced in many of its areas due to speculation of areas turning around at some point in the future, but there is also a strong growth of population here supporting much of the inflation of prices.  

Are you speculating on appreciation.

I have never heard of a coming crash in RE market in the recent years other than speculations. 

But housing is still somewhat speculative.

In my own speculation, you have an unrecorded deed of trust but the court ordered judgement is in court record.