Fundamental logic from Rich Karlgaard in Forbes:
- My own investment advice. Listen up. I've paid a painful slug of money to learn this, so pay attention. I'm about to share my best piece of investment wisdom: When America's talking stocks, buy real estate; when America's talking real estate, buy stocks.
Put another way, when the chit-chat at cocktail parties and the infomercials on the radio are all touting that the only direction is up, and too much money is chasing too few deals, you don't have to be a rocket scientist to see that following the herd is a good way to get stampeded.
A really good book that, while focused on stock investing, provides a good global metaphor for investing in general is The Vital Few vs. the Trivial Many by George Muzea. Quick, concise read that will change the way you think about being a "smart" investor.
