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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (50730)	5/31/2009 10:59:44 PM
From: prosperous	Respond to of 218072

Yes, if people are able to take away that stocks/bonds are speculation and under heavy intervention, that they should not believe anything coming in media, and they are the sacrificial lambs they will be able to think through straight through a lot of conflicting and contradictory press on the state of the economy and act rationally. Stocks can be avoided for most investments, bonds are harder to avoid (should be shorter maturity govt bonds since they can tax people and pay them) and should cover that part of of the portfolio where people perceive risk of holding too much commodities is too high. If gold takes off it has a potential for setting fear of god in the reckless financiers who are using people's ignorance on financial matters, media, and speculator's greed to keep things going the same way.

To: TobagoJack who wrote (50730)	6/4/2009 10:32:46 AM
From: St. John Smythe	Read Replies (4) \| Respond to of 218072

TJ, Greetings from Money Sponge USA. I agree with your observation that owning a home is consumption, rental property is investment. It’s none of my business, of course, but it prompts the question: Do you own or rent your primary residence? I ask because I am debating the merits of owning vs. renting. A few years ago I bought in USA a lovely house of the wooden stick variety, larger than I need, at an admittedly rich price, but thankfully employing minimal leverage (1/3 LTV). The house with all of its associated expenses is not a burden, but with mounting concern for the great reckoning that lies ahead of us, I’m wondering do I pay off my mortgage and watch as house value possibly erodes further or do I sell at a loss, move to a rental, and mineralize the rescued cash, saving it to put to work more efficiently one day in the I-hope-not-too-distant future, such as in rental property? On the other hand, if we are headed for inflation (or hyper-inflation), wouldn’t it be wise to hold some kind of real property and mortgage? PS - Your Coconut is a lovely little girl.