This roller coaster clip of the Vancouver housing market price history since 1975 is a useful image when thinking about asset prices in general today and always. Human behaviour and leverage drive our asset price cycles. If we always keep the roller coaster image in mind, we will never be able to relax and fall asleep after a period of very steep climbs; nor will we be as inclined to throw in the towel after a period of very steep falls. I personally hate roller coasters and their steep drops. This is the reason for sticking to careful risk management rules.
Hat tip: Vancouver Condo Info
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Cory’s Chart Corner
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