I noticed that more people are posting comments about this strategy. I know that Given’s originally included stocks, bonds, and money market accounts as the 3 places to move your money, using mutual funds of course. I have yet to see where Real Estate fits it. There are some people who believe that both stocks and real estate go up at the same time. But as you can see in todays market that is not true.
Also regarding stocks, you can invest in real estate stocks, but they may be going down, while financial or technology stocks are going up. I assume that good mutual fund managers know this and invest accordingly. And one more thing. where do the energy and commodity stocks fit in? If we were to create a true money movement analysis perhaps we should include all of the economic indicators and track them all to see which ones are more likely to go up, when others are declining.
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As you can see. I wrote this last year and my predictions were correct. Now that the Real Estate Market is really stuggling. The Stock Market is blasting upwards to new highs almost every day. Whenever this stops, we may see some recovery in the housing market.
Comment by David on January 19th, 2007 @ 1:58 pmAs you can see. Stocks and Real Estate are not the only places investors put money. If the RE market is weak and also Stocks, then investors can find other places. They can buy Real Estate in the form of Short Sales, Foreclosures. This is probably happening right now. But there is still an artificial hype in the stock market. Maybe because they used Oil and commodities as an interim. Now that those two markets have peaked the Stocks are on the rise again. As soon as more bad news about housing and foreclosures arrives the stock market is back on its way down to about 8000 for Dow Jones. The good news is that the Fed Rate will rise but interest in Bonds will resurface and this will lower the 30 year fixed rate mortgages. This is ok as long as Oil stays below $130 a barrel. Also lets see what happens after the election!
Comment by Bob on August 7th, 2008 @ 3:10 pmLine and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
very best idea make rules time!…
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Comment by swissreplica6 on January 15th, 2007 @ 7:53 am