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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Haim R. Branisteanu who wrote (27724)3/4/2005 8:15:55 AM
From: Amy JRespond to of 306849
 
RE: "If speaking of tech bubble"

Yes, I was speaking of the tech bubble, not the dotcoms since ezines are not technology companies.

RE: "I would better compare the RE in those places with oil and gas stocks"

That's exactly the concern.

In the mid-90s, a couple mutual oil funds had 10-year performance of only ~3%/year for an entire decade.

Namely, because of the preceding oil bubble.

The preceding oil bubble created a flat sector market for an entire decade.

So, the issue to consider is, distinguishing when appreciation has turned into a bubble.

For example, 2X appreciation in real estate might be due to the fundamental shift of a country entering the West economically, but is 4X's really due to this? At some point, appreciation may have turned into a bubble.

Possibly like the prior old bubble.

Regards,
Amy J