Buying high & selling low, does that make any sense? It's an interesting phenomenon. People buy when something is performing well and sell when they can't get any money from their asset. My main comment is in regards to the housing market. I am currently in the process of purchasing a townhome. My wife talked with my grandma the other day and told her about what we were doing. Her reply was, "I'm not sure that that's such a great idea in the current economy". My wife just kind of laughed at her.
The reason I am purchasing a townhome is because my mortgage will be lower than what I am paying for rent right now. I am guessing that the housing market is at the bottom of the trough right now. These townhomes, at the peak of the market, were selling for $160,000. I estimate that the housing market will come back in 3 to 5 years. I'll be able to sell it for a gain, or I could rent it out. Now, does that make sense? Isn't that what we're supposed to be doing, buying low and selling high? Where did we get the notion as individuals that just because the economy is bad we shouldn't invest? Everyone who bought stock after the huge market crash, it didn't really matter which company it was either, has made a lot of money from it.
Those who are wise with money and prepared to pounce on opportunities will find the greatest opportunities when the economy is down. Feel free to disagree with me. I'm not a professional by any means, but I feel that I know that I don't want to purchase a home for $160,000 and sell it for $80,000. I encourage you to find ways to take advantages of opportunities like this. They don't come up everyday.
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