Saturday, December 11, 2004


This morning on one of the Fox stock market shows, Ben Stein made one of those crazy comments that are often made during the final phase of a bull market. He said that the continuing decline in the dollar will mean that the French and other Europeans will continue to buy US real estate such that the real estate market will be strong indefinitely.

The trick here is that the market is likely to "confirm" the outlandish statement with continued strong up-trend in real estate prices. This uptrend will continue until the majority of investors become believers. Then it will be time to watch out!

On an earlier show, the "chartman", Gary B. Smith, said, "What housing bubble? It is all a myth! Buy Toll Brothers." Again, please remember that in "Economics the majority is always wrong." The fantastic run in house prices is not over but even the doubters are starting to believe or are at least ready to capitulate.