tag:blogger.com,1999:blog-27697009.post6410536440726974125..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : Bubble Markets AboundJim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-27697009.post-62243868424335527612007-07-29T20:20:00.000-07:002007-07-29T20:20:00.000-07:00Hi Anon I agree, what ever the investment, the ret...Hi Anon <BR/><BR/>I agree, what ever the investment, the return on it in the form of dividends or rent should gives you a pretty good idea of what you are getting into. As the rent or dividend increases/decreases, so does your asset's value.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-66927993341875479102007-07-29T19:37:00.000-07:002007-07-29T19:37:00.000-07:00Ugh. I should proof read. I DON'T invest in growth...Ugh. I should proof read. I DON'T invest in growth stocks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-30140348146010720812007-07-29T19:35:00.000-07:002007-07-29T19:35:00.000-07:00Finally someone who makes some sense! I am young m...Finally someone who makes some sense! I am young man who has experiemted with investing in various asset classes. <BR/><BR/>The one thing I could never figure out is why I would want to own Google or Microsoft when they pay no dividends? I would ask friends, family, co-workers and the answer was always the same; "because it goes up". <BR/><BR/>But I still don't get it? When I buy an investment property I don't buy it to speculate on appreciation I buy it for the income - rent - cash flow. <BR/><BR/>Dividends in stocks would seem to be analogious to rental income in real estate.<BR/><BR/>For this reason I do invest in growth stocks even though they have increased in value over the years. I just don't get it and I believe one should never invest in what they don't understand.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-1996521477557634112007-05-11T13:06:00.000-07:002007-05-11T13:06:00.000-07:00AnonWhat I was trying to show was the difference i...Anon<BR/><BR/>What I was trying to show was the difference in dividends paid in relations to the stock price. Back then people were paying $100 and getting a 4% return. Now people are paying $100 for a less than 2% returnJim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-7651296548712790292007-05-11T09:13:00.000-07:002007-05-11T09:13:00.000-07:00Get your math right. IBM had two splits in '97 and...Get your math right. IBM had two splits in '97 and '99 so the stock price in '84 by todays value isn't 124 but 1/4 of that.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-76432096452951821852007-05-07T20:42:00.000-07:002007-05-07T20:42:00.000-07:00Hi Anon II think you are right. Selling could be t...Hi Anon I<BR/><BR/>I think you are right. Selling could be the problem of the day. <BR/><BR/>My suggestion to you is to get some coin together. A $20,000 investment in housing in the coming fracas, could be a very good long term investment. I'm talking 3bed 2bath for 100k. What it will pay at retirement age is about the same as Social Security and that will be adjusted for inflation. Look for the repos with a cracked slab. They go real cheap. You are not interested in resale, take the payments to the bank.<BR/><BR/>The other reason I recommend real estate is because you are young. Inflation is something you have not experienced. This is the real hedge against what your Congress can do to you without your permission.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-16539411391209186752007-05-07T20:05:00.000-07:002007-05-07T20:05:00.000-07:00Hi Anon IIThe stock market is too small for me. I...Hi Anon II<BR/><BR/>The stock market is too small for me. It's like horse racing, you only hear about the winners (ie Google). 20k invested in the bond market at %8 doubles with the interest rate drop to 4%. Rental Property if purchased at a good price have always been and excellent money maker. How many times do you buy a 100 shares of stock and it doubles? I've still got some old K-Mart and Florsheim certificates floating around here somewhere.<BR/><BR/>I buy what everyone else is selling. So right now, real estate in Greeley Colorado is starting to look tempting.<BR/><BR/>What I am trying to point out indirectly, is that cash is going to be king and that you should be able to pick up real estate that will cash flow positive even with very low rents.<BR/><BR/>If interest rates jump to 20% because of a liquidity crisis, a drop to 10% would double your money if you bought bonds at 20%.<BR/><BR/>The biggest problem people have, is that they are fully invested and cannot take advantage of any deals that come up.<BR/><BR/>The thing that is almost invisible is the number of people living from paycheck to paycheck. A very small disturbance in that sector could have a very drastic effect on the rest of the economy.<BR/><BR/>I don't know if worry is the right word for me, I am more of a pessimist, and that is defined as an "Optimist with Experience."<BR/><BR/>As I have said previously, we each have a mindset and tend to see what we want to see, and I surely could be accused of that. That's part of being human. But it's the interaction with others that helps us to challenge that shortcoming of ours.<BR/><BR/>Take care and thank you for your post.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-46563568266908184782007-05-07T13:27:00.000-07:002007-05-07T13:27:00.000-07:00Jim,what you say is true, however, you have missed...Jim,<BR/>what you say is true, however, you have missed on a lot of money making opportunities in the past 20 years.<BR/>Betting the market will only go down and that it is overvalued has done nothing except lose you money.<BR/>You can't have tunnel vision in this economy, stocks go up and down, you have to play both sides.<BR/>So, what has your strategy yielded you in the past 10 years compared to being long s&p? or are there no opportunities to make money anywhere!?<BR/><BR/>Anon,<BR/>you worry too much, yeah everything could be a pipe dream, however, the American economy has shown its resilience more than once!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-49305539904861666572007-05-07T12:59:00.000-07:002007-05-07T12:59:00.000-07:00The baby boomers are holding a lot of the paper in...The baby boomers are holding a lot of the paper in our hyperinflated economy--at least 60% I'd say. When they want to reap what they've sown there is going to be a big problem--it will destroy a generation's economic health, and they'll be too old to do anything about it. Gen X can't do anything about it, and neither can the echo-boom. There isn't a demographic out there that can absorb all of the stock and real estate holdings of the boomers when they want to cash out.<BR/> The easy prosperity of the baby-boomers used to fill me with resentment. From the get go they've had the best of everything. But at least when what happens happens, I'll still be young and productive enough to adjust to whatever comes before I get old. The boomers are about to pay the piper--I really feel bad for them...Anonymousnoreply@blogger.com