It's called the Contrarian Theory!

Contrarian theory says high put/call ratios are bullish, while low ones are bearish. The higher the ratio, the more investors are flooding into the market to buy puts because they're afraid. On the other hand, an extremely low put/call ratio suggests that investors are too complacent and happy with the market and are mainly buying calls. "High put/call ratios are often indicative of excessive pessimism and thus of large amounts of money on the 'sidelines,' "Conversely, low put/call ratios indicate a point at which there is so much optimism that there is very little money left to push the market higher."

So what you have in real estate is basically 10 year high and low cycles. When the East Coast and West Coast demand is high, the more central parts of the united states are low. As the 10 year cycle begins to shift you see the east and west coast real estate demand go lower and the central parts of the united states begin to go higher.

So the investors cash out of the markets and re-input their cash where the market swing is going. They ususally hold for about five years. They try preventing themselves gettingstuck in the market when it hits it's peak.

Great explanation, thanks.

Very insightful. I would love to vacation in Montana Outdoors