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Old 11-05-2010, 08:41 AM
 
12,436 posts, read 11,955,274 times
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You can't rely on politicians to tell you the truth.

The politicians did not tell us about the dot com bubble nor did they tell us about the housing bubble...that is until it had already popped and then they either said there was no way to know or blamed it on the other side.

Here is a clue that you are investing in a bubble that is just about to pop. If any decision you make regarding an investment in a certain area is the right one...you are investing in a bubble. In the Dot Com bubble, just about any Dot Com stock was going up in value no matter what stock it was and not matter that the company was not making any money. Big clue that bubble is about to burst.

In the housing market, most homes were overpriced and continueing to go in value irrespective of how many homes were being built every single day. Big clue if on average home prices are going up no matter how much you overpaid...you are investing in a bubble.

I have been looking for the new bubble. It probably is gold now.
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Old 11-05-2010, 08:46 AM
 
Location: Great State of Texas
86,052 posts, read 84,531,102 times
Reputation: 27720
Quote:
Originally Posted by hotair2 View Post
You can't rely on politicians to tell you the truth.

The politicians did not tell us about the dot com bubble nor did they tell us about the housing bubble...that is until it had already popped and then they either said there was no way to know or blamed it on the other side.

Here is a clue that you are investing in a bubble that is just about to pop. If any decision you make regarding an investment in a certain area is the right one...you are investing in a bubble. In the Dot Com bubble, just about any Dot Com stock was going up in value no matter what stock it was and not matter that the company was not making any money. Big clue that bubble is about to burst.

In the housing market, most homes were overpriced and continueing to go in value irrespective of how many homes were being built every single day. Big clue if on average home prices are going up no matter how much you overpaid...you are investing in a bubble.

I have been looking for the new bubble. It probably is gold now.
I'd agree with paper gold. Be careful though declaring commodities as bubbles..there is the paper trading that can bring on bubbles and then there is the physical commodity which may be in short supply. Understand the difference.
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Old 11-05-2010, 08:53 AM
 
12,436 posts, read 11,955,274 times
Reputation: 3159
Quote:
Originally Posted by HappyTexan View Post
I'd agree with paper gold. Be careful though declaring commodities as bubbles..there is the paper trading that can bring on bubbles and then there is the physical commodity which may be in short supply. Understand the difference.
I understand the difference and I did not say either was definitly a bubble, but I would be hesitant in investing in anything that everyone says is going up in price. That is the key. The key with these bubbles is to be the first one in...example Gold. Even a commodity such as gold which is in short supply. The early investors buy a lot and it at market price...then EVERYONE heres about it and buy at inflated prices, and then the original investors dump and push down the prices. The last on board lose! The early investors buy a lot and they want EVERYONE to hear about the great gains because they can dump make a profit and then buy again when it drops back down. The average consumer is normally the person who enters late.
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