The Ignorant Investor

Hello,
My first (and certainly not last) visit to your blog today and I notice there are sadly a lack of comments so thought I'd make the effort. I was initially searching for a summary of a WSJ article (I'm not a subscriber) and what caught my eye was that you were the only one criticising it among the Google results I saw. Looking through all your other posts, it's refreshing to see you go against the crowd and say what you think rather than what you think others want to hear. I look forward to reading more.

Sorry this is not really relevant to the Jon Snow article, but I just don't know how to respond to his incredible attitude. He obviously feels a little irrational exuberance is what your country needs right now...
 

Hi Vodstock:

Thanks for the comments. I write the blog figuring I'm the only one who is going to read it, so it's always cool when someone else stops by.

What caught my eye about Snow's claim was that there may be some disagreement about whether there is a bubble or not (and obviously I'm with the bubble folk), I couldn't see how anyone could claim there are zero signs of one. Since he is not a dumb man, the only explanation for this statement is that he's lying in an effort to keep, as you indicate, irrationality in the market.

Housing prices cannot continue to rise at this rate, faster than inflation and wages and the stock market, year after year, so there's going to be a retrenchment. The best we can hope for is a period with no increases to absorb the gains. At least that's what I hope happens. Like a lot of other people, I own a house. I don't want to see values plummet. But I prefer a rational market to an irrational one.