The Tell-tail Signs
In the world of real estate or investing in general, if one takes time and effort to listen, one can easily determine the mood swings of the market economy. The economic climate can be based on how the consumers are feeling or reacting to their surroundings. You can almost spot an oncoming wave of a downturn or upturn if you pay attention.
The Laws of Consumerism
What drives the overall economy? “Consumerism”. It’s all about the fear or confidence factor of all. This is one of the key drivers that can influence investment decisions. Easier said than done, but in this case, going the opposite direction is what you need to do. This means NOT following the crowd and going against the current as much as possible. Enter the market when everyone is no longer willing to spend despite the price drop. Stop buying and possibly sell when everyone thinks they have to because things are going upwards in value. Like what Warren Buffet said, “We simply attempt to be fearful when others are hopeful and be hopeful only when others are fearful.”
Always remember that no one can predict the bottom of a down turn or the peak of an upturn. Not even a unique seasoned investor can! As long as you buy low and hold long term until the right time to sell, then you are in the game! Stop pretending that you have a crystal ball. Quit hoping and thinking you can time the market for more wins. Instead, deal with what the market has already provided you and don’t be greedy. Back your decisions up with an unbiased research and take the proper action. If you have seen enough gain, then you are in good shape. It goes with the saying “50% of something is better that 100% of nothing!”