I have posted the graph of price bubbles I often refer to on this blog. Below that is the REBGV Average price graph.The similarity in the shapes of these two charts is clearly obvious.
At each of the turning points, human nature being what it is, there is almost complete despair and capitulation by bears and bulls.
Last fall it was the bulls who were shell-shocked as 'nothing sold' and MOI reached 20+. Now we have bears in utter disbelief as sales have exploded and MOI is down to 3 months.
So now what?
Well if we are still on the bubble implosion script, then we can have prices hang around here for longer or start to drop, but NOT go up much more. Any significant rise which threatens to match or beat the recent bubble highs would make me seriously reconsider the bubble-bursting scenario.
This is it bears...
