Is a Bull Market on its Way?

Is a Bull Market on its Way?

Pessimists of the current markets point to the fact that while the NYSE is way up, the other markets like the Nasdaq and the S&P 500 are far below a possible record high. They also point to the fact that recent economic indicators are showing a downturn in the economy, although optimists argue that any economic downturn will be short-lived.

One of the best bellwethers for the overall economy is real estate. Since the real estate market deals in such “real” terms, meaning that they deal in land, homes and large buildings; things you can see and touch, the real estate market is very stable and not prone to seismic shifts in price and quality.

If you are going to judge the real estate industry on how stocks might do over the next year, than you might want to think about selling off your holdings now. Real estate experts agree that a “housing bubble” is about to burst, sending the price of real estate across the country into the basement, and a good chunk of the economy with it. A real estate bubble is caused when a flurry of investing causes the market to become overvalued. With the 5-year long real estate boom over, prices from California to Arizona to Florida are coming back down to earth, and the economy at large is going to suffer.

Cities like Boston have already been feeling the affects of this burst bubble. The real estate market there has been in decline for months now and the trend is spreading to New York and even out west where the housing market has been red hot for years.

While there is no way to predict what the NYSE and the other stock markets will do over the coming year, if the real estate market is an accurate indicator, than there could be trouble ahead and a bear market might not be far off.

Recently, the Dow Jones industrial average broke an all time high, and recent stock news shows that the index is ready to break through to 12,000, which would also be a record high. Investors all over the world are asking themselves if this means another bull market, meaning a market that is going to be going up and up is about to start? Or is this a short term rise, and a bear market, or a market that is going to be going down, is starting? Investors have argued over the direction of the market for generations, just like sports fans arguing over who has a better defense.

New Real Estate Investors - Stop worrying! Start Networking!

So you've decided to invest in Real Estate? Have you built your Team yet? Do you realize the importance of a Network? Does any of this sound the least bit familiar? Do you know who you are going to call when you have questions?

It's early Saturday morning and you're Driving for Dollars. You've decided that you're not going back home until you find at least 10 run down/vacant looking properties. Once you locate them, you write down the address, jot down a few notes and snap a couple of pictures.

Now you're on your way back home and you're dreaming the perfect scenario. You will find the owners and will call them right away. You will follow your script (knowing exactly what to say) to check their motivation. The call will go smoothly, you feel confident and you'll offer to buy their house for 50% of the market value and they'll say yes! Awesome!

So you get home, hop on the internet to first check your email and then the distractions kick in and you start internet surfing. One site then another...you have lost your focus. Then you get hungry and get a snack. A few minutes later a family member has a question. Now your getting tired and make some coffee.

After coffee you swear you're going to re-focus. Back to the computer, check your email, surf around, etc. Now you realize you only have 30 minutes until you have to get ready to go out for the evening so you quickly pull up the online tax records, find the owners and look up their phone numbers. Sunday comes and goes without getting back to anything real estate related.

It's now Monday morning and you're on your way to work and are beating yourself up because you didn't make one phone call. And the worst part about it is that you have no clue why???

Maybe you're not making offers because you don't want someone to say "yes"? Sound crazy? Think about it....honestly.

Are you a New Real Estate Investor who is not making offers because you have no idea what you are going to do if an owner actually says "yes" they want to sell?

Stop worrying! Start Networking! Once you have Real Estate Investing colleagues, finding the money and/or finding someone to assign a contract to is even easier than finding deals!

No Real Estate Investor does this alone, especially in the beginning. Networking is key. Join a Real Estate Investment Group or Association, read and post on message boards, read and contribute to Real Estate Forums. Educate yourself.

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Chris Parks is a Real Estate Investor who has been involved in Real Estate in one capacity or another since the mid 1980s. As a member of a small group of Real Estate Investors & Entrepreneurs, and always having the knack for explaining Real Estate Basics in an easy to understand manner, Chris created REI for Newbies in order to teach & assist new Real Estate Investors in a step-by-step, easy-to-understand manner. http://www.REIforNewbies.com