Have the stock market declines caught you off guard? They shouldn’t have. After all the only thing that has kept the market going up in the last year is government stimulus money and the “herd mentality” that I talked about in my last blog.
Now that the debt ceiling talks are over and there’s no good news to be found anywhere, the traders on Wall Street are backing off and the smart money is looking elsewhere to invest. As of this moment, 08/04/11, the Dow is down 513 points.
In mid-day trading today, the widely respected Aden sisters, prominent technical analysts, emailed clients and advised them to sell all equities and keep the proceeds in dollars right now. (Click here to read the article: Market Watch/Panic)
In today’s Wall Street Journal, one of the top stories is entitled “Big Money Gets Into Landlord Game”. Here’s a quote that is essentially the essence of the article:
“Buying foreclosed homes as investment properties has long been dominated by mom-and-pop investors. But now hedge funds, private-equity firms, pension funds and university endowments are dipping into that market. The attraction is double-digit returns at a time when most bonds and other income investments yield very little.”
For an in-depth read of the Wall Street Journal article, click here: Wall Street Journal
There is certainly some irony in the fact that the same guys who are largely responsible for the real estate mess are actually out buying up foreclosure properties. But let’s not miss the point. These ARE smart people and they know that the stock market is not the place to be right now.
They clearly understand that income producing property is the place to be. So, regardless of our biases against such folks, we need to pay attention to what people who know how to make money are doing.
We have been writing about these investment real estate opportunities for over a year now. DO NOT WAIT to take advantage of the distressed housing market. If you have funds to invest, you should set up a Self Directed IRA and use your existing 401k to make that investment.
Contact us by calling 877-229-9763, or fill out the form on our website www.ira123.com.
