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Of course, severe drops can occur in times of low mortgage levels as in fact. Look for red flags in the Financial News, for instance the beginning for this recent housing slump and even the international credit crisis. Small fear and uncertainty stop you from participating. Don't forget that the market goes up more than it goes within. Even poor market timers make money if they are buying good lenders.
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C: No matter what is the victor, the Tidal Wave of Liquidity or the Trench of Debt, one asset class will simply survive but flourish. The dear metals, Gold and Silver, are now advancing to new highs against all fiat money. I have written repeatedly over the recent years that authentic inflection point for Gold and silver will arrive when their values increase even industry by storm a rising US penny. The time is now. Please hold on to the Club!