Bearish RE, Bullish Stocks?

I just read an article:

I was wondering what people know of Whitney Tilson? Rookie?

In a nutshell, he says that we are only in the third inning of the credit meltdown. Alt-A and option ARMs are coming next, around 1.5 Trillion worth. Also commercial RE followed the same path and will start showing up in a while. He says three to four years before we get to the end of the pain.

But, he is bullish stocks because he thinks that the next three to four years of pain has been priced into the market with the recent drop.

What are your thoughts?


60 Minutes did a segment on that last night. There was a guy on there saying exactly that. I forget his name. I think it’s the same guy. But he/ his firm does a lot of research and they called this current mortgage crisis about a year ago. It remains to be seen how it all plays out. I think the RE is bullish for the investors who can buy properties at a HUGE discount. I’m not talking about a huge discount off their inflated value. When it comes to a rental property, the asking price is irrelelvant. The market rents will dictate what you ultimately pay. I think there are huge bargains to be had in this market. That’s also true for stocks. I’m sure there are some well run companies, who are in good financial shape, that make a quality product, but their stock has taken a beating. Both RE & stocks have good quality bargains. You just have to do a lot of homework to uncover them.