Please pardon me. I really meant to say "some people are putting huge sums of cash into real estate." There was a FR poster yesterday who said he paid cash for a home. He affirmed an earlier post about people investing their 401{k) funds into real estate.
The stock market is NOT lagging, it is doing great.
True, people are putting large sums into real estate:
1] The Dollar has declined a lot and the Europeans are purchasing homes in America for investment purposes.
2] Low interest rates/low mortgage rates.
3] Flippers who got burned in the stock market downturn who think real estate is nirvana--they will get burned twice. But for now, they are adding to the upward pressure in real estate prices.
With stocks, you can buy put options , buy put futures or sell stock short and make BIG money when the stockmarket goes down, but it is hard to make big money when the real estate market tanks, which it will do when the Dollar starts rising more against the Euro and mortgage rates start rising.
There was a FR poster yesterday who said he paid cash for a home. He affirmed an earlier post about people investing their 401{k) funds into real estate.
HOLY CRAP!!!!!!!