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To: bobby beara who wrote (11001)6/8/1998 6:30:00 PM
From: Bill Harmond  Read Replies (1) | Respond to of 27307
 
>>California Real Estate in 1989 was a tulip and it still hasn't climbed back to former prices.

I don't think the California real estate market in 1989 is a parallel to the stock market today. Real estate is generally a category investment...it all moves up and down together, plus the residential real estate market was financed virtually entirely on 80% margin. BTW, the principal reason I don't work any longer is that we sold our beach house in Marina del Rey to a nice Japanese man in 1989.

The real estate market nationally might be more similar, because it has regional corrections like the stock market has rotation corrections. Anyone owning semiconductor capital-equipment stocks can tell you that the group isn't overbought.