Re: Buy high,sell low
I think REITS are run up, but I'm not sure the home buying thing scares me that much. With the vanguard REIT index, most of the top third of their holdings are office buildings, apartment buildings and storage facilities.
Oddly, I'd expect office building rents to have slid a little from 2000-2003, and apartment buildings to suffer as people moved to homes.
One thing thats a major eye-roller for me are the 'experts' who say if you have a lot of equity in your home, to not bother with REITS because you already have enough tied up in real estate. I wanna see one of them explain how a home in the Sacramento area correlates with apartment buildings in Los Angeles, office buildings in Manhattan and 10 acres of storage lockers in Memphis...
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.