The real estate market in the U.S. has experienced significant price declines in the last five years, dropping as much as 40% in some areas of the country. The hardest hit markets are California, Nevada and Florida. These markets experienced some of the fasted increases in real estate prices starting in 2004; hence it is no surprise that these markets have been hit the hardest. Prices are now back down to their 1991 levels, so why aren’t people rushing to purchase properties that a few years ago, at much higher prices, were thought to be great deals?
How to Protect Yourself from the Bernard Madoffs of the World: Ponzi Schemes Revealed p1/2
In January 1920, an Italian immigrant discovered an arbitrage potential in international reply coupons – IRC. By purchasing IRCs for stamps in Spain, and then exchanging them for postage in the USA, he could net a profit. Forming a corporation called “Securities Exchange Company”, he decided to raise capital by selling investment coupons with a guaranteed 50% rate of return in only 45 days. Investors lined up. A required $1,000 dollar investment returned $1,500 for a gross of $500. Investors were so pleased from the results that they re-invested their earnings. Over the better part of 1920, approximately 15,000 people invested, and reinvested. Investors used their life savings; homes were mortgaged and assets were liquidated. People continued to reinvest their profits. Money was being made hand over fist. After only 5 months, the Securities Exchange Company had made several million dollars.
Top 5 Investment Books
Whether you are an experienced financial investor or new to the game, here are five books that will improve your skills in any economy.
Five Stocks to Avoid for 2009
In the wake of the subprime lending crisis, many stock investing positions are selling far below their fair value. The year 2009 will exciting for investors who know how to sort the wheat from the chaff. Opportunities will abound, but not every stock is bargain. Some companies are still overvalued, even at their current price. Here are a few companies to avoid when revamping your portfolio.
Options for Investing in the Auto Parts Industry
Slowing growth, decreased wages, and rising unemployment all spell doom for new car sales. However, this doesn’t mean there isn’t money to be made in the automotive industry. There are plenty of companies who operate in the secondary automotive sector and who are in the business of repairing and maintaining used cars. In a recession, people are more likely to repair their current car rather then buy a completely new car. Some of the leading companies who operate in this secondary automotive sector include Monroe Muffler Brake Inc. (MNRO), AutoZone Inc. (AZO), and O’Reilly Automotive Inc. (ORLY).
Options for Obama-Related Investing
While the details of the Obama economic stimulus package are still far from finalized, the prudent investor can look at the broad strokes and consider steps to capture some of the stimulus wave. Having the vision to recognize potential key players in the plan is critical to successful investing over the next twenty four months.
Mortgage-Related Stock Investing & Option Investing
Mortgage rates are near record lows. This came about from the Federal Reserve Board’s relentless downward bias pressure on interest rates. Ben Bernanke, chairman of the Federal Reserve Board, wants a near zero percent rate for short term interest rates based on prevailing economic data. With this near zero rates, the Fed’s goal of spurring up economic activity is gaining foothold in the industry where this financial mess started in the first place – the mortgage sector of the housing industry.
Twas the Night Before Expiration by: Michael Chupka (With apologies to Clement Clarke Moore) www.poweropt.com
Investing Options in Recessionary Education
With unemployment approaching 7%, people are going to be looking for new ways to enhance their credentials and make themselves more attractive to employers. One of the most popular ways to do this is by going back to school or continuing your education. Employers are always looking for skilled workers who have some formal education in their background. Since most individuals who are being laid off are not likely to attend a typical four-year college or university, most will turn to a more convenient, and in most cases a more cost-effective option; online universities.
Trade Bullish Companies for Bearish Times
During a recession, the types of companies that usually perform well are grouped in a category called Consumer Staples. These companies make products people will use no matter what the state of the economy, and are usually located in what is known as the Fast Moving Consumer Goods Industry (FMCG). Products included in this category are: cleaners, toothpastes, toilet paper, paper towels, detergents, and soaps. The leading companies who engage in the production and sale of these products are Clorox (CLX), Colgate-Palmolive (CL), Proctor & Gamble (PG), Unilever (UN), and Chattem (CHTT).