Bubbles

History repeats itself. We have heard it before and we are hearing it again. While there are many differences between the dot com bubble of a decade ago, there are as many similarities to the housing bubble that just burst.

Among other things, a good deal is a good deal in any market. What do I mean by that? Well, if you are using the right metrics and buying at the right price, then you are going to make money, whether you are buying stocks or buying real estate. In both of the bubble cases that we are talking about today, emotions not real value, is what drove the market to its inevitable collapse.

What bothers me most is that is just went through a ridiculous bubble 10 years ago...10 short years ago. Everyone was caught up in the frenzy of making millions or getting their share that not many people sat back and figured out that things were going awry. It takes self discipline and a deep sense of self. You have to know yourself. You have to be confident that you can take your profits and be happy with them. You have to be willing to leave some money on the table. You can't second guess yourself once you have made a deal. You can't have your head on a swivel looking for your next deal before the first one is complete. You have to have a plan...and you have to stick to the plan.

We can't afford to go through this again as a nation. We are killing ourselves, our credit, our credibility as a nation of borrowers. We have to be smarter next time...if we can all learn from our mistakes then this is real estate downturn could be one of the best things that ever happened to us. Sadly, many people won't learn from their mistakes and the same mistakes will be made again in another 10 years. But for those who have learned their lessons and keep growing as investors and real estate professionals, this is an incredible lesson that will help you amass a fortune. Just make sure you recognize the signs of a bubble. Maybe that is something that we will talk about in a later blog.

The last bit of advice is to do the opposite of what the masses are doing. Actually, RUN in the opposite direction that the masses are running.

Good Luck and Happy Investing!

Rob