The housing market is driven by herd instincts – as are all markets.
First published in 1841, “Extraordinary Popular Delusions and the Madness of Crowds” by Charles Mackay depicts the follies of group dynamics and mass psychology since nearly the start of time – and that’s why this book has been in my business library for more than 50 years.
It will remain there forever too. Yes, it’s that good.
Solomon said ” there is nothing new under the sun” and we see that market manias and panics have not only played out throughout the centuries – but still do in the modern day.
If you look back at the lessons learned from the the 2000-2006 housing bubble, you’ll see that people who scrambled to get into real estate when prices were sky-high did so at their great detriment.
”Borrowed enthusiasm makes you
a speculator not an investor.”
Homie don’t play that game – and neither should you.
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March 19, 2022 Seminar