today at a speech. He specifically mentioned regional bubbles. He called the current housing market growth levels "unsustainable." While Beazer and others have had terrific growth, this is already built into the share price. The future is not as strong and that's what should concern investors.
One of the better contrarian indicators predicting previous real estate bubbles has been what I'd call the Playboy Playmate Contrarian Indicator.
Simply stated, it goes like this: When a Playboy Playmate of the Month gives up her modeling career to pursue a career as a real estate investor, it's gotta be close to the top of the real estate cycle.
Well, guess what?
Jamie Westenhiser, Miss May, 2005 is giving it up.
That's right. Ms. Westenhiser has decided to jettison a perfectly good modeling career to go into ... real estate.
If you're interested in more about this story, go to my Yahoo profile and click on my Homepage (a Yahoo discussion group called The Intelligent Investor) and take a look at message #2200.
I think this is what my finance professor in b-school referred to in discussing the Capital Asset Pricing Model as a "classic misallocation of assets."
he all so warned about the stock market bubble way back in 1997 and called it irrational exuberance and the market didnt look back untill march of 2000 even at the rock bottem in 2002 it didnt go back to 1997 levels