People, these are sentiment extremes in these markets. Real estate is going to fall. Your best bet of when to buy it is around 2016 when you'll purchase it at cents to the shilling at current market prices. Be patient and hold onto your cash.

The decceleration is now quite near.

Inflation has stayed below the Fed's target for more than two years. Yet investors still focus on the Fed's every move. So now try to guess the publication date of still another quote from The Elliott Wave Theorist:

"The vast majority of investors seems confident that the Fed’s actions make a stock market collapse impossible. [We] hear comments along these lines: 'the Fed will provide liquidity,' 'the Fed is injecting money into the system.'

"[The truth is,] the Fed does not 'inject' liquidity; it only offers it. If nobody wants it, the inflation game is over. The determinant of that matter is the market. When bull markets turn to bear, confidence turns to fear, and fearful people do not lend or borrow at the same rates as confident ones. The ultimate drivers of inflation and deflation are human mental states that the Fed cannot manipulate.

"The day the Fed lowers one of its rates or engineers a major temporary loan -- and the stock market goes down anyway -- is the day that investors will become utterly uncertain of what they believe about market causality, and panic will have no bridle."

The Theorist published this in September 2007. One month later the stock market topped, followed by the year-and-a-half meltdown which ushered in the Great Recession (from which we still have not fully recovered).

Why didn't the Fed stop the collapse seven years ago? The short answer is: If they could have they would have. Just something to keep in mind for investors who continue to pin their hopes on the Fed.


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@Mnandii I would welcome a fall BUT with a rising population, growing GDP and a hugely cash based property market I doubt if it will happen.

Most people think that the economy is a key determinant of stock market behavior. Pages 260 through 264 of The Wave Principle of Human Social Behavior and the New Science of Socionomics1 demonstrate that actually, social mood trends, as reflected by the trends of the stock market, determine the direction of economic activity. Most people think that politics affect the stock market. Pages 272 through 282 in the book show that the social moods, as reflected by the stock market, controls the selection of leaders and therefore the direction and outcome of politics. Most people think that peace and war mightily affect the valuation of stocks. Pages 265 through 270 show that aggregate mood trends, as reflected by stock prices, determine social climates that are conducive to peace or war. The fundamental observation of the new science of socionomics is that social mood, which is patterned according to the Wave Principle, is the generator of social action, be it economic, political or cultural. The key insight of socionomics is that the direction of causality between social mood and social action is precisely the opposite of that which is almost universally presumed; the former dictates the character of the latter, not vice versa.