Quote of the Day
Asking prices are currently irrelevant. As I have pointed out many times, the top of any asset bubble is typically characterized by decreasing supply and barely increasing prices. Prices start to decline, and some sellers hold out thinking things will get better. They don’t. Prices decrease some more, and the weakest sellers give in. Inventory…
Asking prices are currently irrelevant. As I have pointed out many times, the top of any asset bubble is typically characterized by decreasing supply and barely increasing prices. Prices start to decline, and some sellers hold out thinking things will get better. They don’t. Prices decrease some more, and the weakest sellers give in. Inventory increases, sales volume increases and prices decrease. The cycle continues until everyone who thought that holding out was a good idea kicks themselves for not selling at a mere 15% discount when they had the chance. Sellers capitulate. The market bottoms.
— by lechacal in Average Prices Up in BK, Inventory Down
denton, now we know — it’s all your fault!!!!
denton…we are buying Pfizer (PFE) today…yield is 7.9%. BAC yield (after the dividend cut) is 6.4%
DOW 8600.
Yikes!
“I cannot believe that DOW8000 is about to become more than a commenter name on Brownstoner. I want to cry.”
Ya never know. We still have a massive 579 points to go! See DIBS’ comment.
But stocks are getting mighty attractive looking, more so than housing. I’m gonna be looking at dividend-paying stocks soon.
This may be the third October in history where being in the market is a bad idea. What are the chances of that?
PS: Today is my birthday. I can’t believe that my last birthday was the Dow all-time high, and this is happening today!
daveinbedstuy – understood. But of course, one always wants to get in as close as possible to bottom!
I cannot believe that DOW8000 is about to become more than a commenter name on Brownstoner. I want to cry.
You don’t cw. Nobody does. that’s what makes a market function.
I don’t doubt the truth in this… but I wonder, in NYC anyway, how low the floor will be.
I really think that 75% of home buying in this city in the past 5 years has been recreational. Or a family with 2 kids in a 2 bedroom rental or coop thinking they are entitled to a house. NYC will see a change in priorities when it comes to housing. People will be happy to keep whatever roof they have over their heads. Yes, some people will have to sell. But far fewer will choose to.
The question is: as a prospective buyer, how do you know when the market’s bottomed?