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

To: Tradelite who wrote (25481)	11/29/2004 1:25:57 PM
From: damainman	Read Replies (1) \| Respond to of 306849

"Few of us--poor little stock shareholders-- can make a similar claim. In many cases, particularly since the tech wreck of several years ago, the stocks actually own the shareholders." Not sure exactly what comparison is being made here. My stock portfolio is 100% paid for, no margin- I do admit however, that I don't own the whole company if that is what you are trying to get at. You can buy a house for zero down, but you can't buy stocks for 100% margin- not unless you take a cash advance from a credit card and send it to your broker or launder it some other way. Just because you own 100% of an asset does not preclude it from being bubble material. I don't know, maybe its the people I happen to be around, but the level of speculation in housing is the same speculation I saw everyday with stocks back in 1999. One of my female coworkers has a husband who was a daytrader back in the day but has since been forbidden by his wife to daytrade anymore 'cause he got whacked during the bust. This same wife has went and bought 5 houses in Ca.'s Central Valley in the past 2 years. Where does someone with 6 homes and a household income of ~160k fit into those radio statistics?

To: Tradelite who wrote (25481)	11/30/2004 6:09:03 AM
From: Amy J	Read Replies (1) \| Respond to of 306849

RE: "40 percent of all U.S. homeowners own their homes outright, all paid up, no mortgage." I sure hope so. Otherwise, people are going to be ultra desperate when they retire and the system could break. Would love to see a link to this statistic, if possible. RE: " poor little stock shareholders-- can make a similar claim." The stock market crash certainly wasn'tfun for anyone, other than possibly short sellers. The people that have it the hardest from what I hear, are those with children entering college. Nothing worse than selling stock in a downturn. The downturn has also been hard on LT buy/holders. Had to change my strategy to writing CC's, which has helped reduce the losses. Have 3X as many shares as what I had in the year-2000 due to CC (after tax estimate). So that has helped it, but it certainly hasn't cured the problem yet. The best thing I did during the boom was to sell a bit of stock to pay in cash for a nice, new car in Sept or Aug of 1999 and a small property outside of Calif on March 31, 2000 that has doubled in value but unfortunately it's a small piece of networth, certainly not enough to make up for the stock losses. Regards, Amy J