Posts by Jeff Macke

  • Even after the crash, Americans still love real estate best

    Jeff Macke at Breakout22 mins ago

    Five years after a real estate bubble popped in epic fashion, it seems Americans are looking to get back in the trade. According to a recent Gallup poll, 30% of us say real estate is the best long-term investment. Gold and stocks were ranked as the second most popular investments at 24%.

    The results are a far cry from the peak popularity of housing back in 2002, but are still eye-popping in light of the magnitude of the housing collapse just 6 years ago. In the attached clip Yahoo’s Phil Pearlman says America’s passion for investing in whatever seems to be rising at the moment may have given us collective amnesia, but other forces are at work as well.

    “Part of this is confirmation bias,” explains Pearlman. Most people didn’t sell in 2007. Those who managed to hang on are still in tangible possession of a physical asset in the form of their house. Intuitively any asset that managed to survive the last decade of craziness in America can’t be all bad, can it?

    A Contrarian Indicator

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