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I gota laugh at all this...

I agree with Lynn...Bonds/Stocks/RE (Hard Assets)..are the 3 legs of investment. When one leg becomes over priced and the rate of return becomes smaller and more risky MONEY flows to the most under valued area.....WHICH NOW IS...STOCKS (because of uncertain stability in world politics and economy). Bonds have run up in price because of uncertainity and ever pushing lower interest rate, now Bonds holders stand to lose princiople as rates push higher. RE has risen in price because of demand and low interest rates. With higher rates the affordabilty index declines.

Granted certain areas of the country will be hit harder than others. In CA lower priced homes will fall less than more expensive homes. There is always demand for the cheap stuff.

Now let me see here....I move to LV a year ago and bought a 3700 sq ft Trailer for 350K (while I have a mortgage, I have an equal amount of funds from the CA house earning a greater rate of interest than I am paying to make the mortgage payments...thus my home here in LV is essentially paid for). That said the value of my Trailer here in LV has increased to 700K.

LV Boyz and Girls is no longer cheap..the median price home is 253K up 33.1% in the past year (which is more or less equal to San Bernardino/Riverside median of 258K). The bizness climate and demographics are all favorable...Nevada is the 2nd fastest growing economy in the nation, after Florida. There are apx 6000 people moving here every month from other states. In any downturn Nevada will most likely be hurt the least. The problem here eventually will be water.

Hmmm a 30% decline in prices means....700K - 210K = 490K on a 353K investment...or 490K - 350K = 140K/350 still equals @ a 45% return.... I think I can handle that....

Sometimes even the stupid make out.........