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

To: azb111 who wrote (25709)	12/8/2004 2:11:55 PM
From: deeno	Read Replies (1) \| Respond to of 306849

commodities, gold, juno fund (short treasuries), non dollar bonds, collectables, hedge funds (if you have the stomache), maybe forgien stocks, short term cd's/tsy/agency, ARP's. This is assuming you have paid off your credit cards, auto loan, lines of credit, student loans and most any other type of debt. Finally any investement that would benefit for the reasons that you think stocks, bonds, and real estate are over priced and will all drop together. Good luck.

To: azb111 who wrote (25709)	12/9/2004 1:04:49 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

<Now here's what I don't understand ... if everything like houses, real estate, stocks, bonds, etc. is way overpriced, then what exactly should American's invest in? I mean, if our savings rate is so low, like 2%, and if we need to invest more, what should we invest in? Overpriced stocks? Bubble real estate? Economics is so confusing to most people. It's easier to just live for today and not worry about things like saving money or the future.> Agree that it is confusing and our fed chairman and declining job prospects forced lots of people into speculative and risky behavior. Well if you like to sleep at night, love to physically own real estate,live in an inexpensive market, feel comfortable you can keep it rented in a down cycle and you can generate 9-10%+ cap rates (operating income/purchase price) go for it. I mentioned Houston condos still hung over from the mid 80's oil bust on this thread several weeks ago as an example. I would not recommend placing new money or taking on debt in the bubble markets these days however. Best to wait for the next down cycle to level off or travel/move to the inexpensive areas. It is probably much better to forget about real estate to invest real money today but do educate yourself, play defense with your money and and live for today. Then when the oppportunity strikes in perhaps 4-7 years jump in with both feet. As an alternative you have a ton of public REITS that give good dividends. There always seems to be a buying opportunity every 6-12 months on an interest rate scare. Another alternative is you can buy CD's of short term duration 1-2 years today earning over 3%. Many banks even allow you to buy short term CD's in foreign currencies such as England and Australia that earn 5%+ short term.