Take a look at the new video I created; it discusses the likelihood of a current market bottom and eventual real estate rebound in Massachusetts over the next five years:
The Case for Optimism
“It’s smart to recognize opportunity, even in bad times.”
That’s the lead-in to “The Case for Optimism,” the cover story for the current issue of BusinessWeek magazine.
The Market Cycle
So much has gone wrong with real estate over the past four years that it’s easy to think that real estate will stay down forever.
But as stressed in the current edition of BusinessWeek, the fundamental truth of the economic market cycle should give us good reason for optimism for Massachusetts home prices: all recessions end and are followed by better economic times. And a resurgent economy brings home price appreciation.
The Panic of 2008
We suffered a devastating world-wide financial panic in 2008 which was partly caused by (and which greatly exacerbated) the national US real estate recession which started in 2005.
However, financial panics and recessions are just as much a natural part of the market cycle as booms and economic expansions.
The market cycle means that economic growth is often followed by recession. But economic downturns likewise yield to better times of prosperity and eventual home value appreciation.
Past Panics Prove That Optimism Pays
Here’s a partial listing of the past US financial panics as originally compiled by Robert Sobel, author of the highly instructive book Panic on Wall Street:
• The Panic of 1792
• The Jacksonian Crises 1837
• The “Western Blizzard” Panic 1857
• The Gilded Age Crisis 1873
• Grant’s Panic 1884
• The Knickerbocker Trust Panic 1907
• The Great Crash 1929
• The Crash of 1987
All Bad Times End
As you can see from the above list, financial panics have a long history in the US economy; every time, the panic played out, the economic crises eventually ended and a new cycle of growth and prosperity ensued.
Those who invested during the bad times were richly rewarded down the road once conditions improved.
The Panic of 2008 and economic havoc that followed were not unique events and did not change the fundamental, regenerative operation of the market cycle.
The key thing to remember with all financial panics, market crashes and economic recessions is:
So check out the video and start planning how you’ll profit from the coming Massachusetts real estate rebound – it’s sure to come!
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