Don't listen to HP. But do listen to REAL portfolio managers and businessmen like Mark Kiesel at PIMCO (unlike The Incompetent & Corrupt David Lereah). Especially if they graduated from REAL schools like Michigan (vs. the REIC-corrupted Harvard and Wharton)
Kiesel points out that it makes no sense to own today, unless you're a masochist. Just rent (like he does). And down the road, when the blood is in the street, and the fundamentals make sense again, it'll be time to buy again. And for much, much, much lower than today's stupid prices.
One question my friends and colleagues have asked me repeatedly over the past six months is: Are you still renting? Yes!
I sold my house over a year ago and continue to rent. Back in late 2005, I became anxious about my investment in the “American Dream,” after spending a considerable amount of time and effort researching several factors that I felt would influence housing prices.
I sold my house over a year ago and continue to rent. Back in late 2005, I became anxious about my investment in the “American Dream,” after spending a considerable amount of time and effort researching several factors that I felt would influence housing prices.
At the time, I was nervous about housing and ended up selling my house in early 2006 after owning for eight years, and then, upon closing, published For Sale, our U.S. Credit Perspectives, June 2006 publication. A year ago, I suspected housing prices were set to take a sharp turn for the worse and more “For Sale” signs were coming.
Based on the current outlook for housing, I will likely be renting for one to two more years. While many factors that influence housing prices have turned negative, I suspect we have not yet hit bottom. In fact, housing prices should head lower throughout the rest of this year and next year as well.
For renters and potential homebuyers, my advice is to still rent. The housing market has turned for the worse but the unwinding of this bubble will take more time.
Unfortunately, this is not good news for the U.S. economy, job creation or corporate profits. Nevertheless, investors who are patient and adopt a conservative investment strategy should prosper over the next few years.
