One day Chicken Little was walking in the woods when -- KERPLUNK -- an acorn fell on her head
"Oh my goodness!" said Chicken Little. "The sky is falling! I must go and tell the king."
Sorry, couldn't help it.
IMO Yes there is a slight bubble. Yes prices will fall a little only to rebound in a few years.
No, the sky is not falling.
If a person in So Cal had sold his house when the bubble warnings had first started circulating, he would have missed out on at least 30% appreciation on his house, maybe as high as double that (my esitmate).
Suppose the "bubble" drops prices 20% (which I doubt), he would still be ast least 10% ahead. My opinion? ride it out, but do it with fiscal reponsibility. Anyone foolish enough to get into a risky mortgage they cant afford deserves what they get.
Oh, and don't invest in financial institutions, they are going to get their hands slapped.
Oil stocks are the way to go.