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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (15297)	4/1/1998 8:32:00 PM
From: Bonnie Bear	Respond to of 18056

Greg: california doesn't track the rest of the country. Never has, never will. Most of the state was been in a recession since 1990. The low interest rates is a real plus for this state, lots of businesses still starting up and moving in. When I surf around the state by car or internet I can see positive change in areas that retirees go. Maybe you will start to see property prices rise around DC. And then there's silly valley- Since our state taxes and cost of living is so high, senior engineers are in the 50% tax bracket and making six figures- so the $3000 a month mortgage is cheaper than the $2000 a month apartment rent as long as the cashed-in stock options give the $200,000 down payment. Rent increases are forcing people into buying. The consensus at the office is that real estate (outside of the bay area) is much better deal than stocks, and people seem to be inclined to sell and pay taxes on their 401K and use the money for real property when they retire. I've been buying stock since the beginning of the year- smallcap financials, REITs, microcaps and ADRs. I have no mid- or large-cap stocks, only smallcap value and high-dividend stuff. I'm about to sell off some brokerage stocks that had a nice run and buy more mortgage REITs. 8% dividends from growing companies selling at book value just give me a warm fuzzy feeling. So you can call it a top. I'm not going to try shorting this idiocy again, easier to bottom -feed.