Stop gloating over declining home prices - it hurts

Not a jab at you or your thinking pabst, but what do you think happens in the high pe markets if sbux, mcd, wmt etc start to turn down?

 

Remember housing still has the benefit of good employment and a great interest rate environment.

 

Good question. I'm not a bull on stocks. I'm not really a bull on RE either. I'm just not all beared up.

IMO being balanced between cash, RE, stocks and commodities is the ticket. It's very hard to say what kind of environment the future holds.....

 

Buying a house for investment is not a good idea considering how much you have to pay for interests, it'll probably adds up to about 3 times the value of the house? If you are a good trader, I am considering you are, just imagine how much you could accumulated over the years with that money doing trades.

 

For those that are bullish for stocks but bearish on real estate the acid test on that sentiment is simple. Rather than just fight the housing market and sell at a loss simply strip your equity with a home equity loan on all these extra houses and condos you picked up intending to flip. Put that cash to work in the "bullish" stock market and make a 20% gain to offset the real estate loss. Then take the winnings to close out the HEL and dump the real estate at a loss but a net smaller marginal gain in total net worth. At least until the Democrats get the entire world in tax chaos again you can take the home loss write off, the mortgage rite off, the home real-estate tax write off and only pay 15% on the long term capital gains (if long 12 months or more) or a 60%/40% long/short split if doing it with options trading...

The only down side is if we have a hard landing you lose everything. But then the gov has to bail everyone out (then tax them on the bail out help in a self eating watermelon sort of economic voodoo). Either way so what's the difference since its a going to be a government subsidized economy no matter what happens...

TS

 

Thats why gold it the way to go for the longterm. They will print until there is something on the order of Weimar Germany. The pabst idea that shit could quadruple is not that unrealistic

 

Presidential Executive Order number 6102 decreed in 1933.

Been there done that nuff said.

 

Im talking about a panic. I'm just saying that gold would continue to outperform the major averages just like this year.

 

I meant not in a panic

 

In a panic scenario - lead trumps gold 100% of the time.

TS