This was a real estate investors conference where nationally known people came to sell their wares. Many very experienced and knowledgeable people were there as well as newbies. However, 85% of the courses offered would probably not help most people because they wouldn't be able to execute what they were instructed.

1. One of the vendors had a girl friend who was a realtor. She is telling him that hedge funds are buying real estate willy nilly, not having any real idea of what they are buying. Also, they are only seeking returns in the 5% range which doesn't give them much room for error. Lots of room here for a big, negative explosion.

2. At a meeting for very experienced investors, many people thought that the reason there hasn't been greater rise in interest rates was that the velocity of money was low.

3. At the same investors meeting virtually all thought that substantial inflation was baked into the system and that it was foolish not to get loans at low rates and leverage your investments.

Myself, I think there is a substantial chance of a harmful rise in interest rates in the next 18 months which could implode the real estate market. I have a decent amount of cash available if that were to happen.