Stocks?
Bonds?
Foreign currency?
Short housing stocks?
Savings account?
CD's?
Your mattress?
More real estate?
December 16, 2005
Reader question: What's your investment strategy now that the bubble has burst?
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15 comments:
oh, boy, I'd hate to be in your shoes in a few months
good luck out there though
by the way, why are you on a housing bubble blog site? worried?
after dropping 50%, nice play - it's called the dead cat bounce
as an investment banker, you understand supply, demand, market mentality, bubbles, manias, etc, yes?
so, seriously, don't you see the bubble here? don't you see the correction underway? and don't you see major, major issues for homebuilders, mortgage firms, FNM, FRE and homeowners?
Investment Strategy:
Oil and Gas Stocks. Not just any Oil and Gas Stock. But a careful due diligence investigation.
No alternative energy stocks. Too long, long, long, term.
A well chosen Oil rig stock and suppliers for the Oil and Gas Industry.
I am into a forced renting for living space right now. Not enough funds to buy real estate in 1992 in Los Angeles. I moved to LA 1992. That was a wonderful price time. With the exception of the 1950's and 60's of course.
In 1960 if you watched your spending and worked for someone else you could by a 3 bedroom home for $15,000 to $25,000 and live good. No new car of course.
So today, Dec 16, 2005, I am watching and waiting ready to buy a home again.
Time and chance happeneth to them all. Ecclesiastes 9:11.
Yes! Chapter 9, Verse 11. That is really, really, strange indeed.
So. Be. It.
Puts on TOL, CFC, PHM, CTX. Buying cheap, whatever's $.10/share or less. I'm expecting big drops, and not worried if they don't hit this month or next. They will.
norcal - can you give symbols for your jan08 puts - I'll take a look
NV - couldn't agree more - I love bubbles - a lot of $$$ to be made on the way up
But I also think you can't live your life in denial - thus when the tide turns, you better turn with it or get crushed
But... I understand that almost every person is invested in this bubble not popping - the real estate industrial complex (realtors, yourself, homebuilders, construction workers, home depot employees, investors, etc etc), in addition to every homeowner
That's why I encourage anyone to read the articles, stats and economic theory on this site, as well as the books I recommend.
Regognizing a bubble is powerful. Doing something about it is empowering.
Not seeing it is foolish. Not doing anything about it is disaster.
As to other comments to this post - I'll look more at commodities - good point. I think there is too much at state to short the builders - they'll do anything to prop up their stocks before they can sell out. And I like cash. 4% interest earning, ready to deploy at the right time, Warren Buffet endorsed cold hard cash.
No one picked up on Oil and Gas Stocks. Hmmmmmm.......
Yep, my housing stocks are roaring to life.
I pity you fools that talk about short the single digit PE company
You have a great website here, and I'm going to tell all my friends about it.
I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
the indexes easily.
Take a look at Wallstreetwinnersonline.com
RickJ
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