The case of the shoeshine boy (or, consider yourself warned):
At some point in 1929, Joe Kennedy went to get his shoes shined. You may be familiar with his sons, John Fitzgerald, Robert, and Edward as they have dabbled in public office. Being a patron of polite society, Joe frequented a particular shoeshine stand, becoming chummy with a young lad that worked there. One particularly banal day, ostensibly prior to November, Joe was chatting with the shoeshine lad and the boy gave him a hot stock tip.
The tip itself has been lost to time but Joe’s reaction was what makes this anecdote legendary. He posited that once a bull market reaches such a manic phase that everyone (including humble shoe shiners) are trying to invest, the bubble has reached its terminal size and it is time to get out. Joe immediately shifted his portfolio to short speculations which afforded him astonishing profits when the market crashed in November.
Whether or not it’s true that Joe Kennedy amassed his fortune due to a conversation from a shoe shiner is inconsequential. In the decades following, the shoe shine boy indicator has become an allegory for being time for investors to pull out of a market.
What does this have to do with real estate? Well consider this: if Joe Kennedy was alive today with a substantial real estate portfolio, we expect that his shoes would be mirror-shiny. For almost two years, we’ve experienced unprecedented growth in the real estate values and demand while inventory and interest rates remained astonishingly low.
Just last month, however, Bloomberg reported that while millennials are finally entering the housing market, home affordability is at an all-time low. If this trend continues, the already financially strapped young generation could easily be bankrupted especially if interest rates continue to rise the way they are expected to.
The difference between casual investors and bona fide Joe Kennedy-esque tycoons is the ability to spot when a bull market has run its course. The writing is on the wall and the shoe shiner alarms are going off. Now is the time to SELL SELL SELL before the market falls out!
WE CAN MAKE THE SALE OF YOUR CURRENT HOME 100% CONTINGENT ON YOU FINDING THE HOME OF YOUR DREAMS AND IF YOU DON’T FIND IT, YOU DON’T HAVE TO MOVE.
Let us streamline the process of maximizing the profits on your current home and get you into the home of your dreams! Our direct line is (714) 203-1669 or send an email to office@UltimatePropertiesSold.com.