Do Market Conditions Really Count Part 3?
Like that alien who was here for only a single day and never made the association between the acorn and the oak, these investors never made the connection between the down market of the 1990s and the up market of the early 2000s. They saw them as independent of each other.
In contrast, a very few people realized what was happening, and they bought for the long term during the 1990s when the market was down, and later on they sold for huge profits during the 2000s when the market was up. (And if the market is down when you read this, they are buying again.)
The moral of this story is to keep your eye on the long term—not just on a single year or two. Don’t be like that alien who sees only a single day in a hundred-year life cycle. Don’t see real estate as it is today and think that’s the way it will be tomorrow.
Try to learn from the past.