It is stuck with only some lateral movement within a small range for several months. With the refinancing boom on the downside, Alan Greenspan is looking more like a person whose peak has passed him by.

Has nothing to do with Greenspan by now. The market has reached the point of supersaturation. Some people will make money on it just like some people make money in Vegas, everyone else is going to have to put in only what they can afford to lose. Now its property. I read an article in the Globe a few eeks ago that the highest amount of under 25 year olds in history are now property owners. No one is putting their money into stocks. Rich parents that would otherwise have put money into stocks for their kids are now trying to speculate on property for them instead, and people who are going it their own are starting to do the same not only because speculation in major urban areas is pretty secure right now, but then monthly living expenses aren't lost on some landlord.

Stocks dead, I hate to say it. And its not because of enron and all the other guys. If anything, they reaffirmed people's faith in the stockmarket by being caught as "dishonest" in a system that isn't financially backed by gold if that's at all clear. I just think companies pushed too quickly to convert salary and rewards into stock without realizing what would happen.

dolce, I mentioned his name since he keeps jerking everybody around with bullshit growth prospects.

There is a big problem with real estate also. The speculation bubble has burst, especially in (red hot till 6 months ago) Las Vegas. Even that was a well organized scam indirectly assisted by insanely low interest rates.

Huh?
Stocks ARE also property. Just because there's a housing boom right now, doesn't mean that people aren't gonna invest anymore. The stock market has historically averaged 7% annual return after tax; that's better than the real estate market. Don't expect the trend to reverse in the long run just because the oil prices are artificially high right now.

Speculation is tough, and I've heard the southwest, which was the fastest growing part of the country for the past few years has struggled with the ten year drought and the fires. I personally don't think Vegas is going anywhere (as in bottoming up). Its a good investment. Its the quickest growing city in the states right now, and even through its slumps its bound to have massive tourism. Thats very different than a town that was build on a factory and the factory lays everyone off and goes south of the border. The service industry is the future because its pretty much the only thing that can't be outsourced. People buying in Vegas have to hold onto it for a few years and they'll see moeny for sure.

Yes, buying a house in a random suburb two hours from any major city is tough. The point of the burbs is that they can be recreated. No one will buy your house, they'll move to the up and coming new burb and make their own.

But cities are cities. That's not to say people shouldn't look for a good deal, but I think picking up property in NY, Chicago, Miami, San Diego, SF, Seattle, Portland, Boston, Philly, are all going to see a decent profit eventually. Barring that, at least they'll keep up with the cost of inflation and you won't actually lose anything. Stock market you can lose big, and now it seems that while most people aren't losing big, they're pretty much not making a penny either. Supersaturation. One or two companies doing well (and their lucky investors) is not the market as a whole. Its plateaud.

What about if the prices are very high, as real estate is right now. For example, I have a freind with a 2 bedroom APARTMENT in Beverly Hills that has doubled to over 800,000 in about 5 years.

Most things go up and down. Stocks, Real Estate, etc.

Basics - Don't buy at the highs - buy at the lows.

But what does Clinton think about all of this.

By Clinton I mean George.

You're making a typical mistake any person unfamiliar with the market is making - look at what's happening RIGHT NOW and extrapolate. This happened in the late 90's, when the stock market was growing at 30% a year, and it's happening right now, with the market not moving anywhere. Over the long run, though, it grows, and there's no reason to suspect that trend to reverse.

I work at a real estate office in toronto.. Everyone keeps saying htat hte market is going to collapse.. i've heard this conversation the last 4 years, and it's only getting higher. Practically every month in toronto breaks a record in terms of sales.

That's cause Toronto is a nice place to live