Sonia

Where the Big Money Is Betting Big

Rental property is a goldmine for young people who can do the repairs, painting, and cleanup when tenants move out, and put up with the hassle. We sold ours in the 90's and are thankful to be out. It is not for seniors. Before buying rental property, talk to landlords and understand what you are getting into!


On May 16 09:02 AM Ransome wrote:

> Big money is dumb money. A market is made by smart money. It is projected
> that this new and rising market will hit $200 a barrel by the end
> of the year. Dumb money moves in. Near the plateau, smart money moves
> out while momentum defies gravity for a while longer.
>
> Small molecule development is vastly different than large molecule
> development which has approximately four or more major hurdles to
> conquer not found in small molecule development.
>
> Mergers are a sign of weakness, especially in the pharmaceutical
> sector. Guarantees 5 years of internal turmoil.
>
> Gold is an inflation hedge. Did we add to the money supply or did
> we replace bad securities with good money, a zero sum game. Any chance
> the debt encumbered consumer will increase demand?
>
> Real estate: Buying five houses and managing the rentals is a way
> for seniors to survive. The price of admission is still dropping
> and they are still making people that need a place to live. Fewer
> will qualify for a mortgage.

Could the Dow Sink Another 50% by 2012?

There has been so much negatism that I'd guess we've seen the bottom, but there are steps we can take to protect ourselves. My son, whose house is half paid for and had a 5.25% mortgage on 15 years, has refinanced at 4.8 for 30 years to reduce his payments in the event that he loses his job. With the much lower payments he could deliver pizzas and not lose his home. Make a game of "how fast can I pay off the credit cards?" Buy quality stocks in essential industries that pay stable dividends, and reinvest the dividends. When you walk a middle course between gloom and euphoria, life is good!

V Bottoms and the Twin-Peaked Bear

Every bear market in the past had a nadir that was not recognized until long after the upturn began. Every bull peak was not recognized (or acted on by the vast majority of us) until it was long over. Now the water has gone out of the harbor and all the boats - the stocks we hold - are moving down, financials worse than others. Selling the big losers and buying more stable craft - KO, PEP, JNJ, PG, WMT - at present low prices should bring in steady dividends and gains when the tide of money waiting on the sidelines flows back in.