I read an article today on MarketWatch from an economist who makes a reasonable case that our housing market is nearing it’s bottom point. However, the article itself isn’t really what this is about: I’d like to point out the response to the article.
For a moment, take a step back and disregard whether you agree with the idea that our housing market may be near it’s bottom.
The comments left to this article were almost universally negative, with many of the commenters aggressively mocking the economist and questioning his honesty, intelligence and motivation.
That’s all well and good, but the real question is this: Could this intense negativity be a contrarian indicator that maybe the bottom is near?
After all – it’s widely believed in financial circles that intense public euphoria for a particular financial asset generally precedes large declines, and intense public negativity for a financial asset generally precedes significant asset value growth.
In other words, the more fervently the public tends to believe something about a financial asset, the more likely it is to be fundamentally untrue.
What do you think? Let us know in this anonymous poll:
Also, I welcome (and encourage) your thoughts about this issue in the comments area below. Thank you for reading RealEstate.BryanEllis.com!