Hi Tamara, a vacation rental property owner in San Diego County I knew did well during the recession. Prices are much higher now and you’ll need to be a very good rental property manager. Take a look at the San Diego Housing market report if you didn’t read it. San Diego’s fantastic and the shortage there will never ease. My opinion is that you need to be a good marketer to keep it rented. If you build up a good database of returning renters, you should be okay. With VRBO and Airbnb, you’ll have extra reach too. With Trump bringing jobs and investment money back home, I can’t see a recession, just volatility and maybe some trade wars!
Greed and only greed caused the crashes. Investing is the attempt to make a financial killing, in other words, bigger profits and less work. Why else would anyone with their head on straignt want to make a profit on the backs of others? Thousands of years ago it was determined by one nation that debts should be forgiven every 7 years. Lending money with large interest rates was unfair. It’s in Egyptian and Abrahamic history. But GAMBLERS saw the same things as unconcerned individuals see today. Morality be dammed and me first.
When markets are very volatile, the overall trend tends to be down. So what investors should be hoping for are extremely boring days on Wall Street when not much happens. That has been the usual state of affairs for much of the past decade, but now volatility has returned with a vengeance. The following is how CNBC summarized the carnage that we witnessed on Friday…
By 1983, consumers found that most predicted uses of home computers were unrealistic, except for games. Children used most home computers—Coleco planned to market its Adam home computer to "boys age 8 to 16 and their fathers ... the two groups that really fuel computer purchases"—so games dominated home computers' software libraries. A 1984 compendium of reviews of Atari 8-bit software used 198 pages for games compared to 167 for all other software types. Because computers generally had more memory and faster processors than a console, they permitted more sophisticated games. They could also be used for tasks such as word processing and home accounting. Games were easier to duplicate, since they could be packaged as floppy disks or cassette tapes instead of ROM modules (though some cassette-based systems retained ROM modules as an "instant-on" option). This opened the field to a cottage industry of third-party software developers. Writeable storage media allowed players to save games in progress, a useful feature for increasingly complex games which was not available on the consoles of the era.
The New York Times then noted, "Automatic computerized traders on the stock market shut down as they detected the sharp rise in buying and selling". As computerized high-frequency traders exited the stock market, the resulting lack of liquidity "caused shares of some prominent companies like Procter & Gamble and Accenture to trade down as low as a penny or as high as $100,000". These extreme prices also resulted from "market internalizers", firms that usually trade with customer orders from their own inventory instead of sending those orders to exchanges, "routing 'most, if not all,' retail orders to the public markets—a flood of unusual selling pressure that sucked up more dwindling liquidity".
Is funny, the tropical depression is well away from us but we are getting an extremely wet weather system over the state, they call it an anti-cyclone, whatever that is, all i know is i could use some sunshine, been raining for weeks, only one or two days here and there that didnt rain. Too damn wet, crops rotting in the field, at least the market crops, oh well, such is life as a farmer!
While the A$ is working off very negative short positions and oversold conditions resulting in another short-term bounce, it’s still likely to fall to around US$0.70 and maybe into the high US$0.60s as the gap between the RBA’s cash rate and the US Fed Funds rate pushes further into negative territory because the US economy is booming relative to Australia. Being short the A$ remains a good hedge against things going wrong in the global economy.
If the market went down, is it because one company changed its business model or its forecasts? Because a mutual fund changed its strategy? Because a glitch triggered a wave of selling? Because yesterday it went up a lot and people decided to take their profits and invest elsewhere? Because one large investor decided to cash out on high valuations? Because another round of stock options for Facebook employees matured, and they sold? On the whole, we can't say why the market went down today is due to a single reason.
Another risk for stocks in September is coming from the bond market. First the yield curve, or the difference between short-duration and longer-duration rates, is narrowing. That so-called flattening is a warning sign about the economy. If it inverts, meaning short-term rates spike above longer-term rates, it's a recession warning, market pros say.
Of course, sometimes something happens. On June 23, 2016, voters in the United Kingdom voted for their country to leave the European Union. Membership in the EU means improved trade policies, less friction around goods and services and people moving across borders, and (despite the economic kerfuffle around different economic strengths and weaknesses between member countries) a general sharing of wealth from multiple countries all working more or less together.
Hi Mike, I would say yes, see the https://gordcollins.com/real-estate/mississauga-real-estate-forecast/ post on those trends. Milton has no room to grow with everyone wanting to live there. They’ll get the free trade deal resolved and Doug Fords new plan to expand northward into farm country will stimulate the economy like crazy. Detached in Mississauga/Milton are rare finds so not surprising Milton has the 3rd lowest days on market in the GTA. Once Ford is in, the prices will rise because he probably will turn the economy on.
All the main stock indexes of the future G7 bottomed out between September and December 1974, having lost at least 34% of their value in nominal terms and 43% in real terms. In all cases, the recovery was a slow process. Although West Germany's market was the fastest to recover, returning to the original nominal level within eighteen months, it did not return to the same real level until June 1985. The United Kingdom didn't return to the same market level until May 1987 (only a few months before the Black Monday crash), whilst the United States didn't see the same level in real terms until August 1993, over twenty years after the 1973–74 crash began.
To be able to make good decisions amid a stock market crash, investors will need to be able to remain calm. As Buffett has said, "Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing."
The cost of ownership in the most high priced markets is going up even more. Why? The limitation on the mortgage interest deduction to $750K and the limitation on the sales and property tax deduction to $10K. With the increase in interest rates, the partial non deductibility of interest and taxes, the overall cost of ownership is going up. Most people will feel the punch in their guts next year when they file the 2018 taxes. That is when most folks would realize what hit them was not a pleasant surprise!
September is also when the Fed is next expected to raise interest rates, and its post-meeting statement Sept. 26 and comments from Fed Chairman Jerome Powell could signal how strongly the Fed views its forecast for a December hike. David Ader, chief macro strategist at Informa Financial Intelligence, said Powell was not as dovish at Jackson Hole last week as some may have thought.
Umm sorry, but you know nothing relevant about the 2007-08 financial collapse and should do some research before claiming you know anything about financial theory. I agree with you that some interest is fine and fair, but Calvin is quite correct that in this case is was simple greed, gambling and dishonest on the part of your “bankers” that’s to blame. The subprime mortgage risk is not what caused the collapse in 2007-2008. What happened here is that you “bankers” even though they knew that interest rates were only in the 6% percent range, and thus grouping the mortgages together and selling them as investment could only net a profit in that same range (6%) instead claimed that they were worth 10-100 times what they were and sold them as such. Normal (not subprime mortgages) were regulated by law so that your cheating bankers(to be fair this was not all bankers, only dishonest ones) were not allowed to claim that they are worth anything more than the rate of return which is obviously the truthful and correct rate maximum that an investor would see. Sub-prime mortgages the other hand, were not regulated by law and nothing prevented your “bankers” falsely claiming and selling the mortgates as an investement with an expected derivative return many times higher than could ever be possible with the real interest rates.
The Dow Jones is flying, but the risks of a crash are many and ready to materialize. Donald Trump was elected almost a year ago, at the time of writing. The markets were supposed to have crashed. They did for a few hours. Despite the many protests, marches, and witch hunts that the 2016 presidential election has caused, the Dow has gained about 30% since November 8, 2016.
Global cues: The subdued Asian markets have also weighed on market sentiment. Brokers said weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments there. Japan's Nikkei was trading 0.46 per cent down at 23,999 as investors took profit from its recent rally to a 27-year high. Meanwhile, Hong Kong's Hang Seng dipped over 1.50 per cent at 26,628.64.
What triggered the sudden fall in indian market ? From July to September 2018, 2 of IL& FS 256 subsidiaries reported having trouble paying back loans and intercorporate deposits to other banks and lenders , resulting in RBI requesting its major shareholders to rescue it . In July 2018 , Hindu Business line reported that the road arm of IL & FS was having difficulty making payments due on its bonds . In the same month , Business standard reported that it's founder Ravi Parthsarathy would be leaving the firm . In September Economic Times reported that one of the IL & FS group of companies called IL& FS Financial services limited had default on its commercial paper payments .This led to an audit by RBI . IL& FS Financial services limited had defaulted on repaying about 450 Cr worth of intercorporate deposits to Small industrial development bank of India ( SIDBI ) . This created panic in investors and they also doubted other arms of the IL&FS . This resulted in sudden fall in stocks related to financial institutions such as DHFL, Indiabulls housing finance , Canfin homes etc . Not only financial services stocks got butchered but other sectors such as infrastructure stocks also got plummeted as IL& FS deals with funding of many sectors .
Home prices have outpaced income. The average income-to-housing cost ratio is 30 percent. In some metro areas, it's skyrocketed to 40 or 50 percent. Unfortunately, metro areas are also where the jobs are. That forces young people to pay more for rent to be close to a job that doesn't pay enough to buy a house. Thirty-two percent of home sales today are going to first time homebuyers, compared to 40 percent historically, says the National Association of Realtors. Typically, this buyer is 32, earns $72,000, and pays $182,500 for a home. A two-income couple pays $208,500 on average.
Thank you Andrea, you’re welcome! Amazing, and a beautfiul area to live. I’d like to drill down into all the LA communities. Incredible that your home appreciated that much over 2 years. Could you get a quote on the rental income upgrade and compare ROI? Are there local restrictions? I think selling is the right move for most, even if you don’t have an idea of where to move to right now. I guess it depends on your financial status and whether you need your jobs and whether you can take a sabbatical. If you hold on for the time it takes to the convert the garage, you could earn another 100k? The demand for rentals is expected to persist. A lot of buyers will like that separate living space even if they don’t rent it out. Are the rentals you could live with reasonably priced in your area of South Bay or will you have to do the long commute?
That was six years ago. Funnily enough, the author of this blog, David Haggith, recently posted an article titled I Bet My Blog on a 2018 Economic Collapse. Basically, he is going to throw sh*t at the wall until something finally sticks – then he’ll pontificate to everyone about how his prediction was correct. It is worth noting that he also predicted that 2016 would be the year of the economic apocalypse and that he was “fairly sure” that stocks would slump in January, 2017.