The markets always win

The most affordable real estate in a generation is failing to lure buyers as Americans sour on the idea of home ownership. At the end of 2010, the fourth year of the housing collapse, the share of people who said a home was a safe investment dropped to 64 percent from 70 percent in the first quarter. The December figure was the lowest in a survey that goes back to 2003, when it was 83 percent. (Bloomberg)

People are beginning to learn to live within their financial limits. Renting has many advantages. The government sold a bill of goods in the past decades for the benefit of the real estate industry.

Who paid the price for the misguided social engineering of our politicians? We did.

But at the end the markets always win and teach us a lesson or two. Are we ready to learn?

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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