Is the real estate bubble about to burst?

Hi Dien,

Thank you for sharing the most current real estate story from the Economist.

An important thing to keep in mind about real estate - or any market for that matter - is that it is always most dangerous when it looks the easiest.

Tom Watson, Sr., the brilliant founder of IBM, recognized this same danger in business. Watson warned that during good economic times, there is a tendency to get blindsided by prosperity and ignore any signs of trouble.

There was (or is) a flipside to Watson's advice: Just like booms are a time for caution, recessions are a time for boldness.

Clearly, the same principles that Tom Watson would apply to running a good business can also be directly applied to wise real estate investment: sell when it's hot and buy when it's not.

And to Michael Ross, I am very pleased to know that you were impressed with my book and that you now have a way to more scientifically analyze real estate markets and trends. As we both know, objective analysis will always trump casual judgement.

Robert Campbell