^{April 15, 2024 | Reading Time: 1.5 Minutes}

Disregard for Fundamental Principles: With the market experiencing strength, many investors are overlooking fundamental principles. This could involve factors such as the intrinsic value of assets, economic indicators, or risk assessment. When the market is performing well, there can be a tendency to become complacent and neglect these foundational elements of investing.

Lack of Experience with Economic Downturns: A significant portion of investors lack direct experience navigating through a full economic downturn. This lack of experience can impact their decision-making ability during challenging economic conditions. Without firsthand experience, investors may struggle to anticipate or effectively respond to the complexities and uncertainties that arise during downturns.
Entry into Real Estate during Mid-Cycle: Many participants in the real estate market entered the industry during the middle of the economic cycle, rather than at its peak. This timing means they have not yet experienced a complete economic downturn during their tenure in real estate investment. As a result, their decision-making may not be as grounded in the lessons learned from enduring market downturns.

Decision-Making Not Grounded in Solid Fundamentals: The lack of experience with economic downturns, coupled with entry into the real estate market during the mid-cycle, can lead to decision-making that is not firmly rooted in solid fundamentals. Instead, decisions may be influenced more by short-term market trends, speculation, or a perception of market momentum rather than a comprehensive understanding of underlying economic principles.

In summary, this statement underscores the importance of maintaining a focus on fundamental principles, even during periods of market strength, and highlights the potential risks associated with a lack of experience in navigating economic downturns within the real estate sector.