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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (2805)	6/27/2003 10:34:53 PM
From: Wyätt Gwyön	Respond to of 4907

hi KJC, I have a sneaky hunch that whatever strategy is best is probably cyclical in some way, this decade renting is best and next decade owning will be the better strategy there's a lot of data backing up your hunch w/r/t returns on particular asset classes. the best classes vary across time and geography. you can find good discussion of this in the book "The Intelligent Asset Allocator" by Bernstein, and an eclectic collection of essays on his site at efficientfrontier.com. excellent international comparisons of historical returns on bonds, bills, currencies and equities can be found in "Triumph of the Optimists".

To: EL KABONG!!! who wrote (2805)	6/27/2003 11:51:53 PM
From: GraceZ	Respond to of 4907

I agree. Its very dependent on what type of person you are, ie. how much risk and uncertainty you can handle, whether you are disciplined to save and invest, whether your primary income will grow, your tax brackets will change, if you can handle the up keep of owning, etc. Also you have to consider what the individual markets are like when you make those decisions. Some local rental markets are more expensive than owning and others are cheaper but they cycle up and down over time. Its difficult to say one way is better than the other without examining the particulars. I do know that I wouldn't want to have to liquidate my house to live in my old age so I tend to advise people to live modestly within their means and save/invest the difference.