I just added audio to this article so now you can listen to it instead of reading it! Just click the yellow play button.

Unfortunately you cannot trust the media. Just when they say it’s time to get into an investment opportunity, that’s when it’s usually oversold and it’s time for the wise investors to get out. Regardless of what the media is saying about the real estate market, the market is down and we’ve not seen the bottom yet. There are so many people that are defaulting on their homes and because of the backlog that the banks have, we won’t see those homes on the market for another two years. So as bad as the market is today, two years from now it will probably be worse.

The stock market is also going through a natural correction, much like it did in 1939. It’s all very predictable and connected to cycles in the economy. If you really want to understand these cycles, read The Great Depression Ahead by Harry Dent. Mr. Dent is the renowned economic forecaster who accurately predicted the boom of the early 2000’s and the most recent stock market crash, which he claims is not done yet.  And to make things even worse the baby boomers are headed for retirement. This is the time when they want to cash in on their investments and take profits. Only problem is there might not be any profits for you if you are heavily invested in the stock market (especially in “safe” mutual funds). Continue reading →