The old adage "buy low, sell high 'is offline for many, this seemingly simple strategy over the past year on the promise of benefits, especially to have failed. Why bad advice because it is not, to do with the fact that most of us, we tend to make their decision based on emotions. our faith right rapidly rising prices and makes up with trends. Thus, we To purchase decisions are the investment opportunities would seem to be ever increasing upward appear. and we sell while prices are plummeting to the bottom in an attempt to "get out while we can "And off verses further damage.
Herd mentality.
All markets, real estate, whether commodities or stocks, tend to run in cycles. Our tendency to believe that the market ever upward (or sometimes down!) For what often "herd mentality" is will continue to lead (or what I sometimes think of "lemming approach to investing as" in) where we see the greatest flood the market peaks and bottoms market investment funds on the greatest return. Actually, mutual funds withdrawn from the amount of money in 4Q, 2008 was at record levels. This, of course, the Results "high to buy low sell - unlike most investment strategy targets!
Early Bird.
Most of us familiar with Benjamin Franklin quote "early bird" are about (you remember anything about being ... worm?). Well, Warren Buffet recently said, "I short-term movements of the stock market ... can not predict what is likely was quoted as saying, although the market higher ... well, either sense or If the economy turns first step if you wait for robins, spring will be over .. "
Bull back?
Given that short-term predictions are hard to predict, it can be safely said that in the long run they will move up again. In fact, the trend of declining market share of about two years later, there are now some cautious bull at the door. Dow Jones in the past seven weeks - the average has risen more than 23%, indicating what might just well up to the next bull market could be the beginning of the cycle. There are also signs that the real estate market as well as officially "fried." In many parts of the country last month, both sales and prices throughout the year for the first time the rate went up.
Logical, consistent investment.
Investment strategy, then, works best on long-term? According to many financial advisors, the effect of emotion out of the equation can be bought at regular intervals over a longer time frame through an investment strategy is taken. Especially for real estate has proven to be a consistent long-term wealth builder. Consider an average home bought ten years ago, on average nationally, 50% higher prices will increase - even if you include the price in many parts of the country experienced drops in the previous year! Seattle metropolitan markets better faired, recent price drops to a 73% increase after adjusting experience.
Market cycles, market reform and market trends will always be with us. You lemmings or Robbins, bull or bear believed in, now a new, successful long-term market and real estate investment strategy is the time to implement.
Modern Chelan area, Sun Mesa Preserve discussion exploring the real estate community! We http://www.sunmesapreserve.com/ visit or subscribe http://blog.sunmesapreserve.com
Robert Yount a landscape and Bear Mountain Ranch, CLOS Chevalle and Hawk ground all Chelan, Washington-based entertainment properties including the design architect planner with 30 years of experience. His current project, Sun Mesa Preserve, Entiat or have a very large planned community, 90% open space, club house pool, and hiking, biking, horseback riding and cross-country skiing is characterized by miles of private trails .
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