{"id":9879,"date":"2009-09-28T18:30:11","date_gmt":"2009-09-29T01:30:11","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=9879"},"modified":"2009-09-28T18:30:11","modified_gmt":"2009-09-29T01:30:11","slug":"investment-strategies-high-volatility-markets","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9879\/investment-strategies-high-volatility-markets\/","title":{"rendered":"Investment Strategies: High Volatility Markets"},"content":{"rendered":"

As I begin analyzing a variety of markets, I thought I would quickly share some tips for investment strategy consideration. In thinking about an investment strategy it is important to consider the volatility of the market you are investing in. For example, a market like Los Angeles might see double digit growth one year and negative growth the next, while a market like Chicago might see low single digit growth one year and simply lower growth the next. <\/p>\n

When thinking about whether or not to get into a market early vs. late and when considering whether to get out early vs. late, it\u2019s important to understand the market dynamics. Consider a market like Los Angeles. Over the past 20 years, this market has seen growth as high as 33% to as low as (25%) in one year. From 2001 to 2006, LA experienced double digit growth every year. Conversely, from 1991 to 1997, that same city experienced negative growth every year (data from Case Schiller Home Index).<\/p>\n

In a market like this an investor is better off getting in early and getting out early. If you are a year early, you might experience one year of negative growth, but you would then be rewarded with rapid growth. Even if its not double digit growth, it will trend significantly higher than the national average. On the other hand, it also benefits those investors to get out early. Given the rapid change in markets, a double digit growth year could easily be followed up by a double digit negative growth year. Getting out early and moving to a safer market would typically be better than staying even one year too long.<\/p>\n

Less volatile markets afford investors the opportunity to wait and see. Markets like Chicago experience much slower growth trends and decline at a much slower rate. In these markets it\u2019s smarter to invest after the market has begun its rebound because the growth from year to year is rarely significantly different. Additionally, investors aren\u2019t penalized by rapid negative swings Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As I begin analyzing a variety of markets, I thought I would quickly share some tips for investment strategy consideration. In thinking about an investment strategy it is important to consider the volatility of the market you are investing in. For example, a market like Los Angeles might see double digit growth one year and […]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-9879","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10037,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10037\/capture-appreciation-and-cash-flow\/","url_meta":{"origin":9879,"position":0},"title":"Capture Appreciation and Cash Flow","author":"Cooksquared","date":"October 12, 2009","format":false,"excerpt":"The advantage of investing in today\u2019s market is the potential to capture appreciating assets that provide strong cash flow. These investments are the holy grail of real estate investing. In strong markets, these properties simply don\u2019t exist, but in down markets, a smart investor can pick out these diamonds among\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3223,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3223\/canadian-housing-crash-could-induce-more-investing-in-america\/","url_meta":{"origin":9879,"position":1},"title":"Canadian Housing Crash Could Induce More Investing in America","author":"Brian Brady","date":"June 9, 2008","format":false,"excerpt":"You heard it here first. Canadian real estate is in the danger zone. Well, maybe not all of Canada's housing stock will fall but the Western provinces look overvalued. If you subscribe to my site, you heard about this over the weekend. It all started back in 2003. A barrel\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8184,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8184\/the-fed-translated-6\/","url_meta":{"origin":9879,"position":2},"title":"The Fed Translated….","author":"Tom Vanderwell","date":"April 30, 2009","format":false,"excerpt":"Yep, it's that time again.\u00a0\u00a0\u00a0 The Fed met yesterday and today and came out with their announcement this afternoon at 2:15 pm.\u00a0\u00a0 I promise that this one won't be as long as the last Fed Translated was.As usual, my comments are in bold and italics.....April 29, 2009For Immediate Release:Information received\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":939,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/939\/a-different-view-of-diversification\/","url_meta":{"origin":9879,"position":3},"title":"A Different View of Diversification","author":"Cooksquared","date":"January 24, 2007","format":false,"excerpt":"Greg brought me on with the quote, \"I think you would be a good counterpoint to Jeff Brown.\" Well, I guess its time for me to start earning my keep. I fall on the opposite side of this diversification issue. The benefits of diversification outside and inside of real estate\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2840,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2840\/urbanologist-joel-kotkin-why-growth-oriented-cities-like-houston-phoenix-and-atlanta-reflect-the-future-of-global-commerce\/","url_meta":{"origin":9879,"position":4},"title":"Urbanologist Joel Kotkin: Why growth-oriented cities like Houston, Phoenix and Atlanta reflect the future of global commerce","author":"Greg Swann","date":"March 27, 2008","format":false,"excerpt":"Joel Kotkin is the only American urbanologist who can tolerate actual living human beings. In consequence, he can write about the organic growth of cities as they really are, rather than as he might remake them with enough tax money and firepower. This is a long extract from a much\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5621,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5621\/can-california-cultivate-anything-better-than-the-seeds-of-its-own-destruction-urbanologist-joel-kotkin-tallies-the-states-ills\/","url_meta":{"origin":9879,"position":5},"title":"Can California cultivate anything better than the seeds of its own destruction? Urbanologist Joel Kotkin tallies the state’s ills","author":"Greg Swann","date":"November 16, 2008","format":false,"excerpt":"Joel Kotkin on the rise and fall of the Golden State:Twenty-five years ago, along with another young journalist, I coauthored a book called California, Inc. about our adopted home state. The book described \u201cCalifornia\u2019s rise to economic, political, and cultural ascendancy.\u201d As relative newcomers at the time, we saw California\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=9879"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9879\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=9879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=9879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=9879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}