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Ongoing Articles:
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Bank of America & Countrywide: A signal of a housing bottom? The lender will once again have the position of strength....
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Next for the Economy: The Greatest Bull Run in History? An analysis of the stock market and economy since the Bear Stearns incident in March '08...
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No Recession, but Deflation? The March '08 UCLA economic report so far is 'right on target.... .... .. ...
Commercial Properties 30 acres freeway frontage
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Office Space for Lease: 12,625 Sq Ft divisible ..
The UCLA Anderson Forecast Highly Recommended! ... Most Recent Articles: .. The Schizophrenic FED Gambit .. Bearish on Housing, Bullish on Stocks ..
Analysis of California Bank Earnings Highly Recommended!
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Q2- '08: Riverside-San Bernardino tops the list...
. Q2 2008 5-23-08:- "So what do we do now?" Home Page
California Real Estate and Economy: Riverside County - San Diego County
The pinch is on. Not just on the consumer, or the working class American living paycheck to paycheck....but the American investor as well.
What are we supposed to do?
The fed has lowered rates to levels that are roughly 2% below annual inflation. Is running 'even' and paying taxes on that 1.9% CD the wise move now? Or should you invest in gold, silver, or other commodities that are now at all time highs? Should we Invest in real estate, like housing, when the prices are dropping amid record foreclosures, increasing inventories, and possible bank failures? Should you finance, then lose more money on financing fees and possibly your down payment as the market bleeds lower? Should you invest in commercial property, where the economy is slated to grow below 1% annually this year, and businesses are cutting back, not expanding? What about the stock market and its intense volatility?
I say, the lower the stock market goes, the more attractive it becomes when compared to other investment ideas. The most difficult time to determine where to put your money is when the stock market is up, not down. Flexibility and liquidity are the most important things now. Stocks have been running up or down by overall market sentiment: and the sentiment now is overly bearish. This means: time to go shopping.
After a brief run up past DOW 13,000, we are now apparently returning to the bearish sentiments of Feb march: the era surrounding the Bear Stearns debacle. If we see the stock market return to the 12,300 or lower, it is an opportunity to enter the market. No other investment vehicles are attractive. IMHO housing and commercial properties are an easy pass now; so is CD investment and commodities.
All roads lead to the stock market for investing in today's difficult environment: provided the market continues to drop and sentiment remains bearish in the short term. Risky? Most definitely. But it may be more risky to leave more than $100,000 in a bank CD, or buy a home that is not liquid and its value intangible.Sitting on cash is the second most attractive option to the stock market; short term readiness. Ironic when you consider the dollar itself is weaker than ever. Deflation in assets, like real estate and stocks, is the buffer for cash hoarding. However, recovery in assets means a decline in the comfort level of holding cash. The key is knowing you can enter the real estate or stock market instantly, and buy in at their deflated prices. The stock market could appreciate suddenly, and the market would be priced at fair value. The only area of investment where a sudden appreciation could occur is the stock market. So it will be important to make entries when on dips: the next entry levels being 12,300 then 11,900.
Good luck out there.
Click here for quick California bank earnings and foreclosure rate updates ---> Analysis of California Bank Earnings
**ARTICLES** Most recent listed last
. Q1-Feb 10 '08: - The Perfect Storm of Economic Downfall Q2- '08: So what do we do now? . .. Q1-Feb 21 '08:- The Counter Intuitive Market Force: But Housing is the Exception Q2- '08: Analysis of CA Bank Earnings . ... Q1-Feb 21 '08:- The 5% Income Rule Q2- '08: Riverside-San Bernardino tops the list... . ... Q1-Feb 21 '08:- A Compelling Argument for Alternative Investments Q2-'08: Bank of America & Countrywide: A signal of a housing bottom? . .. Q1-Feb 26 '08: True Market Analysis, or Self Interest? Q2 '08:- Oil and war speculation . Q1- '08: No Recession, but Deflation? . 3.17.08: Next for the Economy: The Greatest Bull Run in History? Q2- '08: The Schizophrenic FED Gambit .. Q2- '08: Bearish on Housing, Bullish on Stocks
DISCLAIMER: Not associated with any city, county, civil entity, or government body. No warranties are stated or implied. Use at own risk. External web sites are not endorsed. Users agree to all terms. These articles merely reflect the opinions of this author and are by no means a guarantee of future economic conditions. Though the author strives to provide accurate and relevant data, he sometimes relies on external sources and cannot assure the reader of the accuracy contained within. These articles are provided for information purposes only and are not meant to provide investment advice to anyone. Please consult with your professional financial planner for investment advice.
... Most Recent Articles: .. .... Q2 '08: - Oil and war speculation ".. the markets have reacted to oil price surges driven solely by speculators, and a preemptive strike possibility that has not even occurred...." ..
Bearish on Housing.... Bullish on Stocks Stock rally, housing folly .. San Diego County Visit the San Diego blog center.. ... The Schizophrenic FED Gambit The FED rut .. Analysis of CA Bank Earnings Highly Recommended! .. Other Articles ...
Commercial Properties 5.5 acres freeway frontage ...
... Visit the housing time bomb blog. Highly Recommended!
.. ... California Foreclosures Highly Recommended! ...
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