Quote:
Originally Posted by Adder
You are a scholar and a gentleman, but I don't understand what money you think is waiting in the wings to invest once stock prices get back to where they were a few years ago and once housing prices fall yet further.
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Millions of first time home buyers are shut out of the housing market right now because prices remain too high. If prices dropped another 10-20%, they might be able to pony up the down payment to get a home (non-FHA). You also see the currently dead first-to-second home buyer jump into the market.
Regarding the market, the reasons most offered for why people are avoiding it are volatility and a fear it's overpriced. Tons of people have pulled their money out of it, which you could read about on almost any finance website. Correction = New investment + Gains, which = Wealth effect, which = Consumption.
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