It is a miracle that we all have survived to walk the face of the earth. Our survival was dependent on the survival of our parents to the age of procreation. And our existence was dependent on the survival of our grandparents, their parents and the survival of our relatives for scores of generations over thousands of years.
At some point in ancient history our most distant relatives crawled down from the tree tops. They out witted the saber tooth tigers, discovered fire, learned to make stone and iron tools, learned how to raise high caloric crops, and domesticated animals to survive.
In the process some of human survival skills were hardwired in the brain as part of our DNA in the evolutionary process. These ancient brain connections, like fear of snakes, we call instincts.
Our instincts are outdated and shaped for a lost primitive world. Some instincts, like the desire to gorge on high caloric foods, served us well when we were foraging for nuts and berries, but in today's world of super sized meals our instincts to consume large quantities of high caloric foods actually has a negative affect on our survival.
Another instinct that does not serve us well in the modern world is running with the herd. In prehistoric times running with the herd may have offered protection from wild animals and tribal enemies. But in today's world it can be questioned that individuals following logical independent thought serves us better than hanging with the herd.
A good example is in the purchase of real estate. In 2005 and 2006 the herd was buying homes in large quantities. Lot prices were at an all time high. Labor costs were at an all time high. And as you would expect prices were at an all time high. Logically a thoughtful individual, banker, or investor, could see that this was not a great time to buy, but the herds ran straight toward the cliffs ahead, and we know what happened in the stampede.
Well now we find ourselves in a period where inventories are at record highs, interest rates are at record lows, and prices are at close out sale prices and no one much is buying, because the herd is not buying.
Wake up humans! Rise above your instincts. Does "buy low and sell high" mean anything to you. Separate from the herd and try to create new brain paths of instincts to pass on to future branches of your hereditary tree.
Now is the best time to buy real estate so stop cowering with the herd and give me a call...
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