What to buy in a rate-cutting environment September 26, 2007
Posted by Andy Robinson in : Market Research , add a commentMichael Brush of MSN Money wrote an article Stocks that shine as rates fall, which highlights some of the right plays to make in this current environment. When the Fed starts cutting rates, it’s normally the start of a trend of rate cuts that may last a year or more. Knowing this, it’s good to know that retail, technology, banks and gold are likely to benefit from the trend. Click through to the article to see analysis of why this is. It’s also worth knowing that, since 1973, seven out of nine times the Fed started the rate cutting cycle was followed by a strong S&P 500 rally. I would not currently be short the market in light of this.
Home Prices Going Lower September 21, 2007
Posted by Andy Robinson in : Market Research , add a commentAccording to Alan Greenspan, home prices will drop much lower before the speculative bubble in real estate is worked out of the system. He still maintains that this does not necessarily mean we will slip into recession. If jobs remain strong as they have been, then consumer spending may not take a huge hit from real estate declines.
Will the Fed Rate Cut Boost Real Estate? September 19, 2007
Posted by Jenna Robinson in : Market Research , 1 comment so farThe answer, like that to so many finance questions, seems to be “it depends.”
Regardless, some say that the real problem in the housing market is not interest rates; It is that there is not enough money available for making loans. That, coupled with a glut in housing, seem to be bigger issues for the ailing housing market than are interest rates.
Keep the same car and get rich September 5, 2007
Posted by Andy Robinson in : Educational , add a commentI’ve always maintained that the biggest secret to becoming wealthy is not making a hefty salary, but keeping your expenses down, which in turn enables you to save and invest a large percentage of your income. I have warned against the dangers of buying too much house and have stated that one of the best ways to achieve your financial goals is to be free of the burden of car payments. So it immediately caught my eye when I ran across this article Drive Your Car to Death, Save $31,000. This CNN Money writer takes the $31,000 figure from Consumer Reports data. I think that this figure is a low estimate of what you could save because it only factors in a 5% return on the interest that you didn’t have to pay. If you invest the extra money in a tax-advantaged retirement plan and choose a stock market index fund, I think the gain in wealth from driving a car to the ground would be substantially higher.