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December 30, 2003

Millions of investors can't be wrong, right?

From today's Daily Reckoning:


The Dow rose 125 points yesterday. Stocks are speeding to
the finish line this year - after a fine run.

Can so many millions of investors be wrong? "Clear sailing
ahead," they say.

"Don't forget to put on your life-jacket," we counter.

It has been a great year for stocks - if you ignore the
currency in which they are calibrated.

It has been a great year for real estate, too... subject to
the same objection. In fact, it has been the best year ever
for real estate - ever in history.

* A record 6.1 million homes were sold... up from 5.56
million in 2002.
* A record 1.1 million new houses were sold.
* A record $3.4 trillion in new mortgages were taken out -
equal to a third of the entire U.S. GDP.
* And the median house sold rose 9.1% in price during the
last 12 months.

Of course, adjusted for the drop in the dollar, the median
house is actually worth less now than it was at the
beginning of the year.

But who's in the mood for quibbles? The voters are having
their say; they want stocks and real estate to rise, while
they spend, spend, spend their way to wealth. Hold the
kvetching... stop fretting about China or gold... who cares
about the deficits, debts, or the dollar?

Posted by George F. Smith at December 30, 2003 04:35 PM

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Comments

I am new to the internet and I did a search in the search engines on a "real estate blog" and I found your web blog. Let me introduce myself, I am a Halifax Real Estate Agent in Nova Scotia, Canada and I was told that blogs were discussions on specific topics which made me interested in searching for a real estate blog. It seemed like an interesting way to see what trends and technology are happening in the real estate market in other parts of the world besides Halifax. I am considering a blog for myself if I can understand the technology of operating a blog and from what I see I am somewhat hesitant right now even though it was interesting reading.

Respectfully yours
James B. ,
A Halifax Real Estate Agent

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