Living Off Dividends

Shorting the Homebuilders as Their Stocks Surge

Bill Miller said"What took us into this malaise will be what takes us out".

Thats the stupidest thing I ever heard in a long time. It sounds suspiciously similar to Ben Bernanke's motto. If low interest rates caused the severe asset inflation and the bubble, then low interest rates will fix it!!!!!!

Regarding the reader who thought that US homes prices are cheaper than many parts of europe and therefore are not likely to decline further; that's wrong too.
Europe has much higher population density than the US. Easy liquidity is causing UK investors to speculate in the UK and in Spain. This has started to dry up and prices will fall there eventually as well.

Someone mentioned reversion to the mean. That's correct, home prices in the US will revert to the mean. This mean is about 3-4 times the average annual salary for an area. Right now its about 5 times in many places. It'll probably decline to the lower end end of the value spectrum before rebounding to fair value.

No offense to Islandcreek, but many of the financial planners are clueless. they're nothing but glorified insurance agents pushing annuities because of the high commission and tail. That being said, one of my close friends is a planner is very good and incredibly successful. I don't know you so I can't say which camp you fall into, but being an FP doesn't automatically assign you extra credibility, in my opinion.