Here’s another little nugget from Donald Trump’s past that he would probably like to forget. In 2005 he posted some investment advice on the blog of Trump University telling readers not to listen to the “doom and gloom” about the Housing Bubble that just a few short later brought the economy to its knees.
The Housing Bubble: Doom and Gloom Don’t Pay
With housing prices continuing to rise into the far reaches of the stratosphere, there’s a lot of talk about a housing bubble on the brink of bursting. Scared at the possibility, industry watchers have been preaching impending doom, warning house shoppers to be wary of the real estate market.
As long as interest rates stay low and the dollar stays weak—which is an unfortunate situation, but it happens to be good for real estate—then there will be no burst in the current housing bubble. If interest rates go up precipitously and the dollar gets stronger, then there will be some reduction in housing prices.
How you react to the so-called housing bubble can be a barometer of your business personality. Are you the type of person who takes advantage of positive situations when they present themselves, riding them out as long as they last? Or do you heed every message of doom and gloom, avoiding risks that could be some remarkable opportunities? (Read More)
In all fairness, he did go on to note that you have to know when to get out of a market when things start to look questionable. But he posted this at the very height of the housing bubble, just before it went “boom” so anyone who took his advice probably lost a lot of money.