The chart below was borrowed from The Big Picture blog. This one image is more valuable than my Finance degree from college. Because investing is never completely rational, understanding the sentiment of fellow investors can prove to be more financially rewarding than just crunching the numbers.
The Market Sentiment graph can be used to track investor psychology for stocks, housing or whatever is next. Twice I’ve been successful at selling at or near the top. My next challenge is to take advantage of buying opportunities at the bottom.
I see the stock market as currently in the anxiety phase and San Diego real estate in the denial phase. I’ve adjusted my investment portfolio accordingly. See ya at the bottom.
I think we’re in denial based on nervous realtors I know chattering about the eminent correction to the correction.