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Real estate has made more people "rich" then any other investment. I did the whold house flip game and did pretty well. I just don't have the time to buy and flip anymore as the day job is on the road most of the time. In 2009 I got a very nice comercial industrial rental property that has been an absolute home run. Even used some equity in it to buy a peice last year but it took every cent I had to buy in the original rental and even cashed out the 401k but made it work. I will have a fantastic income when I retire. I still have an amount of debt that most would not be comfortable with though. At 42 I hope to see a reasonable dip in the real estate market and get one or 2 more properties as the original one only has about 4-5 years of payments left. If no dip in the next few years it just won't make sense as the retirement plan is at 50 unless something crazy happens and need to work till 55.
 
Futures show 1200 plus point drop in Dow this morning. I smell a relief rally coming soon.

I believe limits kick in when futures drop 5% and hold there unless they tick upwards. We'll also see if the market drops enough today to kick in circuit breakers.

The cash equities market is subject to circuit breakers established by the New York Stock Exchange in the wake of the 1987 Black Monday crash. Trading will halt for 15 minutes if the S&P 500 falls 7% to 2,764.3 at any time before 3:25 p.m. in New York. Another 15-minute pause will happen if losses in the index reaches 13%, a drop that would put it at 2,585.96. If the decline hits 20%, or 2,377.9, markets will close for the day. Only the 20% rule applies in the final 35 minutes of cash trading.
 
On the bright side gold is looking up (around $1700oz):

Edit sorry gold didn't hold that level, it's around $1665. :(


Yes. As you probably know, gold prices run inverse to the stock market. But they typically move slower that the market does. Many people hold gold not only for a hedge against national emergencies/disaster/apocalypse, but also for balance. I typically have not invested in gold, not liking "gold certificates" where you don't have the physical gold. But I did dabble in silver, and had some silver bars. I have a friend that invests in rare silver coins.
 
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Real estate has made more people "rich" then any other investment. I did the whold house flip game and did pretty well. I just don't have the time to buy and flip anymore as the day job is on the road most of the time. In 2009 I got a very nice comercial industrial rental property that has been an absolute home run. Even used some equity in it to buy a peice last year but it took every cent I had to buy in the original rental and even cashed out the 401k but made it work. I will have a fantastic income when I retire. I still have an amount of debt that most would not be comfortable with though. At 42 I hope to see a reasonable dip in the real estate market and get one or 2 more properties as the original one only has about 4-5 years of payments left. If no dip in the next few years it just won't make sense as the retirement plan is at 50 unless something crazy happens and need to work till 55.


Super duper! Good on you!!!

By way of comparison, I got greedy and jumped out of almost all my real estate, after 40yrs, to invest in the tech boom. But timing was way late. So much better to invest contrarian than to follow the trends. Lost my butt.

However, my former bozz came to this area with money to invest from years of working for Raytheon in Crypto repair. He bought 10 acres in the woods, then invested in older buildings and apts, same as I did. These are not the best real estate to invest because the turnover of tenants tends to be very high. But he held onto his. Worked hard to get them paid off in 10yrs. Now that they are, his income is wonderful... He doesn't need to work but he still runs a biz. But he wines and dines his new wife and they do lots of things that people like me can't do in retirement.

Best wishes for your future!!!
 
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This morning (3-9-20) I awoke to see the news report that the DOW had dropped 2000 pts. But, it's currently at -1400 pts. LOL.....maybe I should be happy?

Well, at least I snagged more BA stock. BTW, the FAA is requiring a fix to "wiring problems" of the 737Max. Oh well, I can only wish that the FAA had made the requirement way back when the 737Max was first being approved.

Im_from.jpg

Aloha, Mark

Info on the wiring issue for the 737Max.

 
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The lower the better. Since my portfolio is almost entirely dividend based, price hardly matters to me as long as I'm still getting paid. It's a multi decade game I'm on
 
Typical down day. I added to my JP Morgan Chase position, picked up some Home Depot which I have been wanting but needed it to get to the price point I was looking at. My Dollar General is up $ 8 over my buy price, but I am holding on that one, I made a decent size buy on that a few weeks back.

I will have to pick something to sell to generate some more cash, but may hold steady for a while as well. I am well up over basis on most everything so that is a tough call.
 
This one is difficult to call as no one knows the future

Pretty much true all the time.

When do or do you feel jobs and real estate will take a dump next?

The economy has been in expansion/recovery mode for over ten years, some people think an adjustment on the down side is close and inevitable.

I smell a relief rally coming soon.

I hope you're right.

I seem to recall a popular figure wanting rates to come down. He is getting his wish.

Yes, because he's a businessman invested in many ventures, nearly all of which rely on credit for financing. Meaning, he profits from lower borrowing costs, Of course he likes lower interest rates. I've been kinda PO'd that his conflict of interest in this matter has been ignored.

According to the article I linked to, the market is expecting a 75 basis point cut at March 18th fed meeting. If that happens we will be getting awfully close to 0%.

The Fed has used up most of it's monetary policy firepower, a problem that some economists predicted.

The Fed should shut up. It isn't there for the stock market, it is there for the economy.

Yes, but the Fed and its role have become politicized in the past 15 years and they are off policy now. During that period, a home needed to be found for lots of the stimulus money created during the Recession. The Fed's mission then was to create an atmosphere that would funnel money into equities. A dual mission was to keep borrowing costs low for institutional government.

The problem is still there. Even given the current bloodbath, equities prices are still sky-high. Don't think of it as free money. Because all during the time the markets have been flying high, the value of money has decreased dramatically. It takes more now to buy the same stuff.

my portfolio is almost entirely dividend based, price hardly matters to me as long as I'm still getting paid

Which is the old-time method of equity investment. And this is not a criticism. Used to be, people bought equities for the income they threw off. Current mind-set is to buy equities for quick appreciation, dividends are just a bonus. Problem in any down-turn is that dividends have a way of drying up, at least temporarily.

I will have to pick something to sell to generate some more cash

This is a driving force during major down-turns. Particularly fierce in situations where equities have been purchased with lots of credit. Margin calls force sales, after while at any price. The downward spiral continues.

Cheap money lent at low interest rates has flooded into the equities markets in recent years, a major dynamic of valuations.
 

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