We Are In the Expansion Phase of the Real Estate Cycle?

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Like the stock market, where Bull and Bear markets occur on average every 3-to-4 years, real estate also goes through cycles only of longer duration. In the early 1930s, Homer Hoyt, a real estate economist, discovered that real estate prices seemed to ebb and flow about every 18 years. Famed economist, Fred E. Foldvary, used Hoyt’s theory to predict the real estate crash of 2008. Foldvary pointed out that the cycle does not always function on a precise 18-year schedule but should be around 18 years. One of the primary causes of the Great Recession was politicians demanding banks loosen…

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What Type of Investor Personality Are You?

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There are Six Investor Personality Types: 1) Cautious; 2) Emotional; 3) Technical; 4) Busy; 5) Casual; and 6) Informed Knowing why you make certain investment decisions can help you become a more educated investor. There are several studies that determine investor personality type. The CFA Institute categorizes investor personality types into four main groups: Preservers, Accumulators, Followers and Independents. Barnwell Two-Way Model groups investors into “passive” and “active.” One of the best studies uses Psychonomic Investor Profiling which holds that a person’s propensity to risk is unlikely to change regardless of circumstances. Psychonomic refers to the laws of science as…

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