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If you take comfort thinking that your well-diversified investment portfolio is bound to fare well even if housing values decline significantly, think again. True, that rationale has panned out before. For example, someone who sold a house in the Northeast in and put the proceeds into the stock market would have missed a decline in real estate values and enjoyed stock market gains for the rest of the decade. Investment strategists say it probably won't work that way next time around, however. That's because stocks and bonds — indeed, the whole economy — are now more closely tied to the real estate market than in the past. Although most experts think home prices wouldn't drop more than 20 percent or 30 percent over a couple of years if the much-discussed bubble bursts, even a small drop in prices could do serious damage to equity and fixed-income portfolios, they warn.
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Need to catch up? Make sure to grab some Gatorade and a bagel at the end! And that, alone, is worth a victory lap. The hour opens with a video that Jon shot of himself, and it looks like he might be in the apartment he showed Ashley at the end of Episode I abandoned you.
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