Wednesday, March 02, 2005

Tiny Bubbles

I happened across this article by Eric Englund via THE FORUM. The link from the economist is also worthy if not more so (thanks to HL for posting them) and it reminded me of the last article I wrote on the Bubble.
Just yesterday I heard an advertisement on the radio saying the bubble is a myth and you should go get that loan, people everywhere are making profits and banks are more than willing to loan to you. I still harbor the desire to go into real estate, but have decided that I am not going to do it now, and instead I am going to go back to school. When and if the market evens out I will look to invest then.
My Financial Planning course in high school taught me well that you buy low and sell high, you do not buy high on extended credit and keep your fingers crossed that it will magically keep rising. That is not how markets work. Of course this is pretty basic, and the more experienced you become the higher in the upswing you can place your bets, but for a first time buyer like myself, it simply isn't the best investment I could make right now.
Curses! :p I really wanted to own a house by now. But that's why it's important to have your long term goals and your short term goals. Then if one short term goal gets you knocked off course, you know what action to take to get you back on course. For me at this junction that action is school.


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