Editor’s Note: The following is a guest post from Ilana Rabinowitz, Vice-President of Marketing for Lion Brand Yarn Company.
I have a friend who is an investment advisor. In 2005, he was talking to the man painting his house. The painter told him that he was going start investing in real estate because so many people he knew had made money flipping houses. That was my friend’s economic indicator that the housing bubble was about to burst. At the time, people thought he was crazy. But, his point was, that when people who have no understanding or interest in something start to jump in just because everyone else is doing it, take note of a possible bubble.