REAL ESTATE ALERT

Many of you may disagree with me, but I think this is worth stating: The real estate “bubble” is bound to burst at some point in the near future. If you don’t agree with this, you should go back and re-read “Extraordinary Popular Delusions and the Madness of Crowds”, by Charles Mackay.

The end of all historical booms has been preceded by involvement in the boom by the least sophisticated investors – those who do not understand the investment but are getting in on a “sure thing”. Look around you. Isn’t this happening right now?

Now, more than ever, it makes very good sense to be extra cautious as you consider your real estate holdings. Make certain that you have plenty of diversification in your portfolio, so that when (not if) the burst occurs, you’ll be cushioned.