The nice part about getting old (I’ll be 77 in one week) is that you’ve experienced more than most people – and that includes real estate cycles.

U.S. housing prices may be at record highs today – but as I continue to illustrate in my Timing Letters, a massive mean reversion is likely coming.

Why?

Because real estate is cyclical, and while the cycles may not repeat exactly, they do repeat – especially in California.

Successful investing is anticipating the anticipations of others

“Investing is a game of Snap, of Old Maid, of Musical Chairs,” said the famous British economist John Maynard Keynes (1883–1946).

“It’s a pastime in which he is the victor who plays ‘snap’ neither too soon nor too late, who passes the old maid to his neighbor before the game is over, and who secures a chair for himself when the music stops.”

If you’re a sell high – buy low kind of investor, I’d suggest you do not stray too far away from the exit door.