Not a subscriber? Click here to learn
more.
|
| Home | About Us | Resources | Archive | Free Reports | Market Window |
The Most Awesome Opportunity in American History Just ArrivedBy
Friday, September 7, 2012
The situation we're facing today can be boiled down to a few very simple points... And the result is an awesome investment opportunity.
It is possibly the greatest investing opportunity in American history...
I'm talking about the housing market.
Real estate investor Jason Hartman interviewed me this week on his radio show (available soon at www.JasonHartman.com). And I made my case.
My points were simple:
But the story gets better...
You have a huge "tailwind" for rising prices, courtesy of the government.
First, Federal Reserve Chairman Ben Bernanke will not raise rates for years.
You see, he will only raise interest rates when inflation gets too high or when the economy is booming (specifically, when the unemployment rate falls too far). We are not in danger of either of those things happening right now – and we won't be in danger for a couple years.
So interest rates will stay low for longer than anyone can imagine... And these record-low interest rates should be like lighter fluid on a fire. It's taken a while to get started... But with higher home prices over the last five months, the fire is now lit.
Second, I can't think of an asset that has more government incentives than the home you live in.
Let me show you what I mean...
You can deduct the interest on your mortgage off your taxes. You get to keep up to $500,000 in capital gains on your home without having to pay any capital gains taxes. And on roughly 90% of home loans, the government has literally made those loans possible (through government-sponsored entities like Fannie Mae and Freddie Mac).
In short, the government wants you to own a home... This is simply adding more fuel to the fire.
And for most regular folks, your home is a much better use of your savings than stashing your money in stocks...
Buy what you understand. When you own a home, you know what you've got – the earth under your feet isn't going out of business. But you could easily buy shares of a company that goes out of business. So today, I suggest putting your savings into your primary residence.
In sum, I believe that starting today, single-family home prices will soar higher than anyone can imagine in the next couple years.
The gains in housing prices will surprise everyone – and you certainly haven't missed it yet. This trend is just beginning. And it will last for years to come.
I believe we have the most awesome opportunity in American history in single-family homes – right now. Do your best to take advantage of it...
Good investing,
Steve
Further Reading:
Find more compelling reasons to invest in real estate here...
"It's no wonder some of the wealthiest people I know have been quietly doing this for years in Palm Beach County," Mark Ford writes.
"Add it all up and the conclusion is simple," Brett Eversole writes. "Housing is the ultimate no-brainer investment to make today."
Market NotesWHAT A RISING GREENBACK MEANS FOR STOCKS The S&P 500 has gained 6% over the past six weeks. During that same time, the dollar dropped 4%.
The dollar and the stock market tend to run in opposite directions. That has been the case for the past few years. And it's another reason investors should be a little cautious right now.
As you can see from the chart below, the U.S. dollar index is approaching support at about 81. The red lines also show how the chart is tracing out a bullish falling-wedge pattern. These patterns often break out to the upside.
So the odds are starting to shift in favor of a short-term bounce in the dollar – which translates into a short-term decline for stocks.
– Jeff Clark
 |
In The Daily Crux
Recent Articles
|
