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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: dave rose who wrote (6664)	11/10/2002 7:32:30 PM
From: Tradelite	Respond to of 306849

Dave, I'm in the same boat you are, in terms of wondering what to do with money. Have plenty of money in I-bonds. Looks like Series EE savings bonds might still be a way to go for certain amounts of money that can be tied up longterm, but need to study that further. Meanwhile, high-dividend-paying stocks such as REITS (paying 6,7 or more percent dividends) look OK, but are not particularly safe. Personally, I found the most profitable use of cash to be paying off my mortgage early, which I did. As for downward pressure on mortgage rates.....they can't go much lower, in my opinion, just because of the way the money market works (hey, everyone has to make money on what they are lending and plenty of hands are outstretched, so don't dream of 2 percent interest), and I believe you have been given an opportunity to borrow cheap money that will make you look back some day on your good fortune and grin...widely. That's my personal opinion, only, of course.

To: dave rose who wrote (6664)	11/10/2002 7:38:05 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Dave, I forgot to mention in previous post that what happens to mortgage rates doesn't depend on Greenspan so much as it does on how the market reacts in the bond market. Mortgage rates generally are tied to the 10-year Treasury yield, and right now the bond/stock markets seem confused as to which one will dominate in attracting dollars and holding its value for any significant amount of time. Usually when stocks go up, bonds go down and vice versa. Right now, it's anyone's guess.