Dow 7,500

[antsi]

I think right now real estate is starting to look good

If you are avoiding the stock market because it's tanked right now, the real estate market ought to give you the screaming heebie-jeebies. Real estate is down as bad or worse than stocks, depending on the location.

At some point both will probably start recovering again. We may never see the rocketship growth we got used to through the 90s and early 00s, but even the Great Depression had a recovery. Unless you think something historically cataclysmic is going on here, things will improve eventually.

 

[052.5GT]

yeah, real estate is down, but when you buy it, you actually own something. The land i own is not going to go "belly up" when GM does either, i will still own it.

 

[turnandshoot4]

Yep. My land can feed my family.

If you can't feed or protect your family with it, what is it really worth?

I'm watching the real estate market like a hawk these days. People on Wall St. can't manipulate my land, but my hands can.

 

[antsi]

If you mean that the land has secondary uses, you're right.

Even in the case of companies going under, you still own the stock. It is just worth a lot less than it used to be. The same thing can happen to any asset, including real estate, if you are considering its market value (ie, ability to trade it for something else). What makes real estate different is that you can derive some use from it no matter what happens to the market value.

It's still possible to lose your pants on real estate. Plenty of people have.

If you think your land value can't be manipulated out from under you, look around and read up a little. There are all kinds of ways people can and have been forced in to selling their farms at a loss.

 

[jeremy]

I don't think either the land or the stock market has hit the bottom of the drop yet.

Just my .02 cents YMMV accordingly!

 

[052.5GT]

If you mean that the land has secondary uses, you're right.

Even in the case of companies going under, you still own the stock. It is just worth a lot less than it used to be. The same thing can happen to any asset, including real estate, if you are considering its market value (ie, ability to trade it for something else). What makes real estate different is that you can derive some use from it no matter what happens to the market value.

It's still possible to lose your pants on real estate. Plenty of people have.

If you think your land value can't be manipulated out from under you, look around and read up a little. There are all kinds of ways people can and have been forced in to selling their farms at a loss.

good point on the first one, i guess that is more what i mean. The land has more characteristics that will be appealing to me than a piece of paper that isnt worth anything. The land I can still do stuff with. Secondary uses is probably the correct phrase as you stated.

 

[antsi]

good point on the first one, i guess that is more what i mean. The land has more characteristics that will be appealing to me than a piece of paper that isnt worth anything. The land I can still do stuff with. Secondary uses is probably the correct phrase as you stated.

My heart is where you are on this one.

An old Hoosier farm boy. I just can't get enough of the family farm. I will take a day off and shovel manure out there and think it's the best day of the week. Not to mention shooting without range fees and Rambo attitudes and schedules. I can't wait until my son is old enough to shoot out there. Even now I love to go out walking in the woods or whatever and hear him tell his mom our adventure stories when we get back.

It is great for now but I know the days are numbered. The farm will pass to me and all four of my siblings. Some will probably want or need the money and it is unlikely any of us will be able to buy them out.

And you know, I decided you are right and I am wrong. It's not "secondary uses." It is a farm and a beautiful piece of Indiana and that is its PRIMARY use.

THanks for getting me to think about this and appreciate a blessing a little more.

 

[4sarge]

If you mean that the land has secondary uses, you're right.

Even in the case of companies going under, you still own the stock. It is just worth a lot less than it used to be. The same thing can happen to any asset, including real estate, if you are considering its market value (ie, ability to trade it for something else). What makes real estate different is that you can derive some use from it no matter what happens to the market value.

It's still possible to lose your pants on real estate. Plenty of people have.

If you think your land value can't be manipulated out from under you, look around and read up a little. There are all kinds of ways people can and have been forced in to selling their farms at a loss.

Property Taxes, Zoning Laws & Imminent Domain

 

[Indy317]

I am not promoting stocks. Not at all. My point is if inflation gets bad over the next year, your savings will buy 75% of what it will today, so investing in something may be better than a big savings.

If you like where you live, then look at the commodities right now, you gota think that Natural gas is going to be hot in a few years once carbon tax is levied on all coal and oils?

I like oil and natural gas, just not _yet_. I believe both NG and oil will fall even more. NG is getting cheaper by the month. Once it hits the $2.00 range, I plan on investing, likely a spread in ETFs. I currently think Walmart is a good buy right now. They were down to about $47/share. Even if global trade crashes and we honestly see more "Made in the USA" stuff, Walmart is in the position to buy in bulk. So while prices might go up for basic goods, due to the US min. wages, Walmart will still likely be the volume discount leader for goods.

A very risky play is Sirius Satillite radio. They merged with XM and were on the verge of bankruptcy. However, they got a company to re-fi their most recent debt load and there are talks of a buyout from satillite TV companies. The crash in new auto sales is really hurting the company, but since the most costly packages are at the most $12/month, it is a cheap monthly bill compared to cell phone and cable TV. I have lost $1,700 on this, as I got in when the stock was $1.12. It is now trading around fifteen cents.

I recently shorted Hot Topic at $9.00, as I don't think they are going to make it. Their Twilight bump has to be about over, and Walmart is now getting in on the Twilight action. Their quarterly financial reports remind me of Gadzooks before they went under and PacSun before their stock finally hit $2/share.

 

[Turtle]

Im looking for a couple new rental propertys..... gotta be cheap and good repairable condition. Like the last one I got fer 18500 all it needed was carpet paint and I redid some of the plumbing under the house to give it a better "drop" there for more reliable drains. I smart for a white boy....lol

Gotta house going to eviction court. I hate this part. But 3mts of no rent and they messed up my house... im kinda P-O"ed nice stops here

 

[smokingman]

7500 would be a great day now,it just hit 6500.It is going to go lower.If I had to guess 5000 would not be unreasonable in the next month.

 

[Richard]

Yup but somehow someway I do not believe this crash to be accidental.

 

[CarmelHP]

Everytime Barry Obamy reads his teleprompter, investors start jumping out of windows.

Yup but somehow someway I do not believe this crash to be accidental.

 

[Chefcook]

Soon will be the time to buy....Gm stock hasnt been this low in decades...

 

[6birds]

Just piling up the cash waiting for the turn... wait for it, wait for it!

 

[Britton]

I'll invest in land and ammo! Piles and piles of ammo.

 

[6birds]

Starting to see some returns! Are you guys still sinking it in the lawn, or do we have some investment guys in here? Rental market, small business, mutual funds, stocks?

 

[Britton]

If I can't touch it or see it, I don't invest in it.

 

[Indy317]

Starting to see some returns! Are you guys still sinking it in the lawn, or do we have some investment guys in here? Rental market, small business, mutual funds, stocks?

We have Walmart stock that my wife got as a gift years ago. Due to splits, it is a nice sum of money as an emergency fund or home down payment (ie: Not even close to six figures, not even close to half of six figures!!). I have some Sirius Sat. radio stock, but no I didn't get in at $0.03/share, instead I have 2,000 shares at $1.12/share. It is now at $0.41/share. I have about a little in silver coins, depending on if the old coins are purchased at melt value vs. collecting value (worst grade price). My wife has maybe a grand in a mutual fund, which I really need to just sell and invest in something a little more risky.

I would love to invest in coal, natural gas, and oil, but I just can't bring myself to do it. I believe the market is totally manipulated at this point in time. For some reasons, most market types think the market should _only_ move up, and I am not sure why. If you short something, you are looked on as someone who wants the American economy destroyed, but the whole concept of capitalism is survive or die, so what is wrong with profitting off the death of a publicly traded company?

Anyways, I am keeping an eye on ACI (Arch Coal) and SU (Suncor Energy--natural gas and Canadian oil sands). I think oil prices are being artificially kept somewhat high and they should be down around $30/barrel. Even if oil were this low, given the rush towards nationalization of things _and_ the Cap and Tax energy bill, I think it would be very scary to invest in these "dirty" commodities.

If you think Obama and the socialists will win, Evergreen Solar might be a good high risk stock. I would buy enough Jan 11 $2.50 Puts to try and cover taking a 100% loss.