http://www.zerohedge.com/article/guest-post-primer-3-dangers-mass-psychology-or-why-overwhelming-majorities-are-always-wrong In any market, overwhelming majorities always indicate that the opposite is about to happen, as the overwhelming majority has positioned itself (themselves?) to prosper from the ‘obvious’ coming increase in asset prices. With real estate, 90% of the population currently believes that it is a good investment (the highest in 12 years). This has translated into higher ownership rates (the highest in several generations). So the question must be asked, ‘if so many people have positioned themselves to prosper, to whom will they sell to to realize their gains’? And that, my friends is why I am soooooooo unimpressed when I hear the talk about the massive abundance of real estate bulls out there.
