Thinking of Buying Real Estate?  Don't Do It!

I have many clients who have bought real estate over the last two years at these depressed prices.  They think they bought in at "low" prices.  But "low" is a relative term.  "Low" compared to what?  Yesterday's price, or tomorrow's price?

Compared to yesterday's prices, they bought in at a "low."  Trouble is, compared to tomorrow's prices, they bought in at a "high."

The following chart is from Martin Armstrong, author of the Economic Confidence Model based on an 8.6 year business cycle theory inspired by the work of Nikolai Kondratieff. He correctly forcast the 2007 real estate collapse. Look at what he sees as the future of real estate.

So again, looking back, real estate is cheap right now, but looking forward, it is still way too soon to jump in.

And the same holds true with gold. Looking back, gold appears to be very high priced at present. But looking forward, we still have a long way to go.

This from Martin Armstrong's August 28, 2009 article entitled "Will Gold Reach $5,000+?"

"Gold is not a hedge against inflation, but against a collapse in confidence of the government to solve our problems."

"I have provided the technical analysis on Gold based on a monthly chart. The first real resistance is formed by the Primary Channel that shows $1,350 - $1,750 between 2010 and 2012. This represents still a plain old normal technical move with nothing that would reflect a meltdown. It is breaking this overhead resistance where it becomes support that we enter the "danger zone" of a true meltdown in Public Confidence.


"Most of the projected resistance from the majoor low back in 1999 shows various target from $1,700 to $2,750. However, if gold exceeds this level and it too forms the subsequent support, now we are looking at the $3,500 to $5,000 target zone. This is where we see potential for Gold is a true economic meltdown of Confidence."

Do YOU have confidence that governments are going to solve our problems?