Understanding and applying these three sentences could make you wealthy:

“In bad times, securities can often be bought for prices that understate their merits. And in good times, securities can be sold at prices that overstate their potential. And yet, most people are impelled to buy euphorically when the cycle drives prices up and to sell in panic when it drives prices down.” – Howard Marks (2013 Memo “Ditto”) 

I’m excited to share some thoughts about fear and greed. But I’ll start by sharing a few comments on the current economy to set the stage. 

Not long ago, I opened my computer to a startling CRE email subject line: 

“Prices Plummet to 2010 Levels”

It was a great attention-grabber but was inaccurate. The publication went on to say that the sharpness of the decline in CRE values (not the prices) had not been seen since the Great Recession, which is still disconcerting. (Note that the headline was changed at some point since the original publication.) 

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