Key Words: Fund manager who nailed the last housing crash: ‘It is 2005 all over again’

‘It is 2005 all over again in terms of the valuation extreme, the psychological excess and the denial.’

That’s what James Stack, who accurately predicted the last housing crash, told Bloomberg about what he’s seeing with home prices these days.

Stack explained that his “Housing Bubble Bellwether Barometer” of home builder and mortgage company stocks, which enjoyed an 80% rally in the past year, is once again sounding the alarm for overconfident real-estate investors.

“People don’t believe housing is in a bubble and don’t want to hear talk about prices being a little bit bubblish,” Stack, who manages more than $1 billion for high net worth clients, told Bloomberg.

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