Seems like a good time to take a look at the investment cycle and consider where we might be, which IMHO is somewhere between fear and capitulation.
Regarding stocks, right now we’re on day five of a rally attempt. Today is also election day in the U.S. Anything could happen. By the end of the week I expect the market will either: (a) follow through to the upside with a huge gain, or (b) fail. It could, of course, also just mark time, but that seems least likely, IMHO.
Regarding real estate, I am 100% out, after selling my last piece of USA real estate the day before the worst week in modern stock market history a few weeks ago. I am looking to buy back in 2009 or 2010, depending on where we are living and the relevant investment factors.
Excerpt from myrtlebeachhomeblog.com (just a random blog):
Capitulation is a financial term defined as the sale of one investment at a loss for the specific purpose of moving funds from the sale into a less risky investment. [A]t the point of capitulation we will be close to entering the “point of maximum financial opportunity.” Real estate can’t go bankrupt, real estate can’t pay out a golden parachute to a VP. However, like any investment you can’t buy just any real estate. Real estate is local, just because your market at home is struggling and good deals are difficult to find that does not mean they are not out there.