“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
This mantra of investment from one of the gurus of American business sounds uncomplicated. Its context was strategy for capital appreciation on Wall Street, but its’ application to all markets seems obvious.
When the dot.com and technology stocks of the late 90s launched the market into outer space, the wise men of trade just shook their heads, sat tight and waited for the rough reentry they knew was inevitable. Greedy became fearful in a very short time.
This has a familiar ring. The real estate and lending greed of ’04 and 05’ has turned to a fearful cancer that is metastasizing throughout the economy.
Right now others, actually most, are fearful. Is it time to be greedy? No crystal ball on my desk, but I have noticed the sniffing sounds of capable investors. They haven’t cracked their piggy banks yet, but they are positioning themselves with market trends and other information. They will be many steps ahead when the media lets everyone know that it is OK to buy real estate again.
In the same vein, the pent up demand of second home purchasers and retirees will over flow soon. Those who have worked for 40 years to tee it up or land a 30 lb dolphin under a bright blue Florida sky will grow impatient with a newspaper telling them to wait. My best recent successes have been vacation home buyers with their eyes on the prize and disregard for the negativity that blocks their pursuit of happiness.
My friends, a great time of year is upon us. Baseball season opens with eternal hope, the madness of college hoop culminates in a true determination of a champion and a roar is echoing from Amen Corner. The traditionally active spring and summer real estate season is not far off. Will the fear persist or is it time to get in the game?
Mike Galleher is a Broker Associate with Cobblestone Realty. Mike specializes in golf communities throughout Martin and Palm Beach County. Contact Mike at (772) 285-6637 or visit his website at www.michaelgalleher.com.