Hmmm...let's see....Bay Area real estate has doubled since 2011, and has outpaced the S&P 500, even going back 30 years. So I guess all those people should feel like fools.
As they say, 'location location location' , which Shiller ignores, in favor of the quote that fits his thesis, 'they can't make more land'.
So tired of the generalizations and lazy thinking that passes for journalism these days, and even NYTs and Nobel Prize Winners are not immune
So your assumption is that the Bay area real estate prices will continue to go up and could never go down?
Bay area prices don't invalidate what Schiller said. If you can time the market then of course you can make a ton on real estate. Same thing with the market.
Just because someone bought in a market where prices rapidly went up doesn't make them an investing genius.
prices did go down in 2006-08, before rocketing higher in 2011-2015. There are many factors that bode well for Silicon Valley real estate - scarcity, floods of capital - both cognitive and financial -in the region.
As they say, 'location location location' , which Shiller ignores, in favor of the quote that fits his thesis, 'they can't make more land'.
So tired of the generalizations and lazy thinking that passes for journalism these days, and even NYTs and Nobel Prize Winners are not immune