There seems to be a bubble in news coverage about the housing bubble, which shows editors aren't much different from investors in trying to latch onto a hot trend. But which stories should contrarians bet against - ones warning of the bubble bursting or those explaining why house prices are unlikely to crash? In the late 1990s, when tomes forecasting Dow 10,000 came out, bears were slaughtered before they were vindicated. Indeed, the final blowoff is the most violent phase. We could be at a point in housing analogous to 3000 on the Nasdaq - which hit 5000 before crashing to 1200.
~ Barron's "Market Week," May 30, 2005