Is the stock market bubble about to burst?

Question

I have a house I can't sell which is depreciating in value. I am ready to unload my portfolio.

Answer 1

about to burst?  Its down 20$ in the last 10 months, I would say that is already deflating.  tba

Answer 2

Probably not.  I have bulls as well as bears in my portfolio.  People tend to buy high and sell low in a stock market rather than buy low and sell high.  They see people gushing that the market is high and then buy in near the top and then sell near the bottom.  There are three things that are dragging the stocks down.  It's summer (sell in May and walk away) so there isn't a lot of investors now, there is a fear of a resession (It hasn't happened and economists believe the economy will recover in 2009) and it's election year (people believe that the political party of the president makes certain stocks go up or down so people are waiting to see which president wins to determine which stocks to buy).  Stocks actually beat real estate over the long term.  I predict the gains in December 2008-2009 will make up for any losses this year.

If you bought the house to live in, then just live in it even if you are upside down on it.  The real reason people buy real estate is to hold wealth and not to make money.  Even Donald Trump doesn't make money on real estate (his company went bankrupt twice) but as a real estate agent for large property and uses other people's money to develop large property and then skims some of that money off for himself.  Donald Trump actually owns very little propery under his own name.

Answer 3

Stocks are at a bargain. Buy! Buy! Buy!

Answer 4

The US market hasn't yet declined as much as other markets around the world have declined.  Which means that the US market may have some catching up to do.  And it may decline a lot more.

But the best time to sell is when the market is going up and not when it's going down.  It may be a good idea to sell even now.  But you would've done a lot better if you had sold your portfolio a month ago.

Answer 5

interest rates are too low.  when they increase stocks will be hit.  

stocks can look like a bargain now, but earnings can turn into losses and it will not be a bargain anymore.

Answer 6

The market lost 10% in June. So, now, you think you should sell? Think about it for a moment.

Answer 7

Bubble?  

About to?

We are already down 20% from the market high, so I'd say you are off a good bit in your timing.  That ship has sailed.  

The question now is how low does it go and how quickly does it come back?

No one knows the answer to those questions -- only time will tell.

Buy low.  Sell high.

What part of the theory are you not understanding?

(The only way to make money in the long run is to buy low and sell high.  If you are in a low cost, diversified equity portfolio investing with a 10-20 year time frame, you should be buying and you have nothing to worry about)

Answer 8

Bubble? Where have you been, the last stock market bubble was over in July 1999. Stocks have been limping along since.

And as Warren Buffet said - a house is a liability, not an asset

Answer 9

if you are really worried you coudl just reallocate to safer investments to cut risks until you feel more confident with the market