With the rally we have gotten in the stock market in recent days, and with the Fed hell bent on inflating their way out of the housing bubble, real estate looks to be better than stocks here. With all the negativity in real estate, the overhang of supply which has pressured prices in the hot regions, going in and buying real estate in cities with exploding populations is a good value. The record profit margins of US companies will be pressured as wage inflation is the next step as workers demand higher wages in the face of $100 oil, $12 wheat, etc, the list goes on. That is why the homebuilders have gone up so much, this is more of a credit problem than a problem of an oversupply of houses. The overhang of houses will be sopped up, especially with the Fed pumping out the liquidity, it is just that overall credit quality is poor, which is the banks' problem.
real estate?? really? I sense that gold wont stop at $1000 since the securitzed wall street gerbils are still pushing non US REITs I couldn't find the remote which was lost in the sofa cushions so I had to endure a segment of Kudlow awakening to the possibilty that a weak dollar could be trouble.... thankfully Kudlow is interrupted by commercials which gave me enough time to recover and find the power cord so that I could pull it out of the fucking wall socket
I know I'll catch hell for this but.........fixed interest is the place to be for now. I know it is less than inflation yield wise but....stocks are likely to depreciate further, real estate is a bag holders nightmare, and commodities are at or near a peak IMO as this wealth creation has not "trickled down", therefore the avg. joe cannot afford the higher costs. This will lead to slackening demand and ultimately commodities falling from record highs. In due time that "cash" position will be king and you'll be able to steal shit. But interest is the way to be for now, a truly risk free rate of return in this fucked up economy.
papa, it really doesn't matter what the yard stick is..you have to stay ahead of the inflationist Benny B.'s testimony today was almost sad to the point of collapse... if the US banks cant resolve their own books, the situation becomes hopeless I'm surprised that gold isn't $2000 an oz.... or $5000
daddyeaux ... LOL ... Let me know if you need financial assistance in replacing the possibly damaged cord for the TV. I sure you removed the cord in a hurry. CFMTrader
The pain in real estate has NOT been felt yet. If you really want in.........get this real estate when it's fire-saled after people stop paying mortgages, because they CAN"T, and the banks or courthouses start giving it away. Now is not the time to INVEST in real estate(time frame dependant), but if you're going to live there forever and you believe the price is fair........write that check and don't worry about it.