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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John McCarthy who wrote (68746)	8/24/2006 11:58:24 AM
From: Tommaso	Respond to of 110194

Well, it won't be me buying. I find keeping two toilets from leaking and a dozen spigots from dripping is all I want to mess with. I find it very hard to guess about real estate. Counting all the vacation properties, there appear to be a great many more bedrooms and bathrooms than the United States needs for its population. I wouldn't know what the actual ratio of toilets to citizens is, but I bet it's more than 1-to-1. Aside from being confident that energy will become increasingly scarce and expensive, my other conviction is that for more than ten years the general U. S. stock market has been severely overpriced--in the word of John Templeton some years ago, "broken." The Fed's repeated easings have staved off a market crash indeed have actually managed to allow earnings to catch up somewhat with inflated stock values. P/Es are no longer astronomical, merely unreasonably high. I imagine an era is approaching that might be quite profitable for efficient arsonists and very unprofitable for insurance companies. Robert Frost has a poem, "The Star Splitter," about a man who "Burnt his house down for the fire insurance, / And bought a telescope with what it come to." I presume this occurred during a deflationary contraction a hundred years or so ago. But I am not going to buy stock telescope companies on the basis of that poem <G>.