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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (27583)3/2/2005 9:32:40 AM
From: Amy J  Read Replies (2) of 110194
 
RE: "I had money in the stock market, but the market always seemed to be going down, down, down. I decided to take that money out and invest it in real estate."

That's like chasing one bubble after another and getting a hair cut twice.

One bubble is more than enough.

Off the top of my head (the actual details are on the Real Estate thread), loosely speaking the ratio of Silicon Valley housing to core Nasdaq (let's loosely call this Housing:Nasdaq) was 1:8 between 1990 and 1999.

Currently, the ratio is reversed and from 1999 to 2005 the core Nasdaq to Housing ratio is 6:1.

Over 15 years it's a wash, meaning a real estate investor would have done basically the same as a core Nasdaq investor.

But moving forward, I think Nasdaq is a better place to be than the top of a real estate bubble.

Regards,
Amy J
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