"If Samsung is as good as Apple why do they hire students as shills on websites to trash Apple and HTC One"
Shills who sign up to an investing site and have over 600 comments, 100% of which are devoted to defending a single company, are pretty annoying as well.
This is a great article, because it treats AAPL as just an investment, without all the annoying fanboyism and histrionics often seen from all those single-stock commenters. I've been buying AAPL for the same reasons as you. I might be wrong, but I think the downside is relatively small and the upside is big.
How To Protect Your Wealth From Inflation [View article]
"Maybe math works a bit different for you, but if the PP outperformed the S&P 500, I don't see how replacing an entire component with the S&P 500 would cause it to outperform the S&P 500"
It's quite mathematically possible actually. If any of the four components of the PP had lower performance than the S&P500, then replacing that component with the S&P 500 would increase the overall return.
A resulting portfolio makeup of 2 parts S&P 500, and the remaining 2 highest returning portions of the PP, could indeed beat the S&P 500.
How To Protect Your Wealth From Inflation [View article]
When calculating the S&P500 return, you aren't taking into account the return from dividends, only the change in the index price. The return rate with dividends included would be higher.
Dangers Of The 'Dumb Money' Joining The 'Great Rotation' Into Stocks [View article]
I agree, and I've been burned before by staying in or out of something because it was "obvious", because the market always seems to do the opposite of what is obvious. So I'm averaging in, and trying to buy reasonably priced 3-4% dividend yielding companies.
Robert Shiller: Don't Invest In Housing [View article]
What I mean is that for a given amount of work, the agent would get 5x the commission for a 2M house than for a 400K house. I think it would make more sense to pay real estate agents by the hour, for their time, than for them to take a percentage of the entire transaction.
With a transaction fee of, say, 6%, applied to a 2M house (which is split between agents and then again with their respective companies), I don't see $120,000 of value created.
Robert Shiller: Don't Invest In Housing [View article]
I agree with this; housing may not be at "the" bottom, but I hardly think it's going to completely tank from here. I don't think buying today is anything like buying in the 2000-2005 bubble.
Robert Shiller: Don't Invest In Housing [View article]
"Your first problem is that you think a house with a mortgage of $800 a month would only rent for $600 a month. Why would anyone buy a rental property and rent it out for a loss?"
You are comparing apples and oranges. A lower rent payment than a mortgage payment is not a "loss". They may both happen once each month, but they are doing different things. The mortgage is paying off a loan, and is a specific duration, after which point there will be no more mortgage, whereas there will always be rent. You are looking at just the monthly payment instead of the overall investment (which includes the equity being built).
Robert Shiller: Don't Invest In Housing [View article]
I rent a nice house and pay for renovations out of my own pocket. The landlord and I made a deal, my rent is cheap, but I fix/renovate pretty much everything myself (and I buy the more expensive components and materials, as my landlord is cheap and has no taste). It's a great deal for me because my rent is 50% of what it should be, and I can keep everything high quality the way I like it. It's a great deal for him, because he gets a tenant who takes good care of the place, doesn't bug him about anything, and pays on time.
Robert Shiller: Don't Invest In Housing [View article]
"By the way, there are serious authors that have pointed out that one of the other serious fallacies in the real estate market is that all real estate is valued based on the last five percent sold. The obvious fallacy implicit in that is, if even a high single digit percentage of owners decide suddenly to sell, that they would somehow be able to sell at the previous highs. If the crowd is all trying to rush through the same exit, they are not all going to make it through without all kinds of collateral damage."
Starting in the mid-90s, the market got and stayed overvalued for a number of years, and this situation could occur again. There are a lot of commenters with tons of ready cash, begging for the S&P500 to drop back to 1250 so they can get back in at those old prices, but the crash may not happen for years.
Apple's Magic Is Broken [View article]
Shills who sign up to an investing site and have over 600 comments, 100% of which are devoted to defending a single company, are pretty annoying as well.
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Apple Is Not Worth $460 [View article]
How To Protect Your Wealth From Inflation [View article]
It's quite mathematically possible actually. If any of the four components of the PP had lower performance than the S&P500, then replacing that component with the S&P 500 would increase the overall return.
A resulting portfolio makeup of 2 parts S&P 500, and the remaining 2 highest returning portions of the PP, could indeed beat the S&P 500.
Is Austerity The Solution To USA's Problems? [View article]
How To Protect Your Wealth From Inflation [View article]
Dangers Of The 'Dumb Money' Joining The 'Great Rotation' Into Stocks [View article]
Robert Shiller: Don't Invest In Housing [View article]
With a transaction fee of, say, 6%, applied to a 2M house (which is split between agents and then again with their respective companies), I don't see $120,000 of value created.
Robert Shiller: Don't Invest In Housing [View article]
Robert Shiller: Don't Invest In Housing [View article]
You are comparing apples and oranges. A lower rent payment than a mortgage payment is not a "loss". They may both happen once each month, but they are doing different things. The mortgage is paying off a loan, and is a specific duration, after which point there will be no more mortgage, whereas there will always be rent. You are looking at just the monthly payment instead of the overall investment (which includes the equity being built).
Robert Shiller: Don't Invest In Housing [View article]
Robert Shiller: Don't Invest In Housing [View article]
Robert Shiller: Don't Invest In Housing [View article]
I think this applies to the stock market too.
Is The Current Market Overvalued? [View article]