Sep 08
The recent housing bubble in the US was an excellent example of extreme investor myopia in action as one hundred years of historical data were cast aside in favor of the ever popular (but always tragic) “this time is different” mantra. When home values initiated their parabolic rise early last decade, real estate quickly became the latest “can’t miss” investment, spawning a speculative frenzy that drove prices to unsustainable extremes. We often refer to the resulting real estate bubble as the largest in US history, but in order to truly appreciate the magnitude of the move it is necessary to view it in terms of the long-term trend in home values.
via Seeking Alpha.
