What's going on with the US stock market lately?

[edorr]

Sure, but the point is that the same things; knowledge, capital and an appropriate risk tolerance, are required for just about any investment alternative, same as the market; same as real estate, etc. Risk levels equate to return, more risk usually means more return; capital and risk tolerance are the other two important variables in any of these undertakings. When all three are optimized there is usually a better than average chance of "making some money".

"Knowledge" is overrated in investing. Paulsen was a genius betting against subprime and made billions, and now he is just another sucker that lost his shirt with gold bets gone south. If you win, this does not imply you know what you are doing.

 

[mep]

I don't blame you, but there are lots of highly qualified good renters, that have destoyed their credit and can't get a loan to buy. Good judgment of character (more so than running checks) is of the essence. You can also use a property management company.

Usually, people who have "destroyed" their credit are willing to do it again. There is a damn good reason there is a time limit on how often you can declare bankruptcy. I have a sister who has declared bankruptcy at least twice and these type of people seem to have no remorse. The usual pattern is right before they declare bankruptcy they go on a shopping spree if they have any limit left on their cards in order to run them up to the max and obtain free goods.

 

[ack]

As your every day investor, for individual stocks, I go by 'believe in the sector you know well' - unfortunately, this means the tech sector for me, and I couldn't find anything worthy of investing; even LinkedIn is sky high, with $23bn market cap???

 

[edorr]

Usually. people who have "destroyed" their credit are willing to do it again. I have a sister who has declared bankruptcy at least twice and these type of people seem to have no remorse. The usual pattern is right before they declare bankruptcy they go on a shopping spree if they have any limit left on their cards in order to run them up to the max and obtain free goods.

There are plenty of these specimens out there. This is where judgement of character comes in. Then there are plenty of women with impeccable ethical standards that may be got a divorce, got stuck with an underwater property and walked away from the mortgage. I don't blame them.

 

[mep]

There are plenty of these specimens out there. This is where judgement of character comes in. Then there are plenty of women with impeccable ethical standards that may be got a divorce, got stuck with an underwater property and walked away from the mortgage. I don't blame them.

I agree, but you have to be able to divine the honest people from the cunning or just those who have the inability to discern right from wrong and have an entitlement mentality.

 

[rrr]

"Knowledge" is overrated in investing. Paulsen was a genius betting against subprime and made billions, and now he is just another sucker that lost his shirt with gold bets gone south. If you win, this does not imply you know what you are doing.

Knowledge is essential. Paulsen didn't have enough of it and his risk tolerance was out of sync with his capital account and with reality. When guys blow up it is because of a deficiency in one of the three things I mentioned.

 

[edorr]

I agree, but you have to be able to divine the honest people from the cunning or just those who have the inability to discern right from wrong and have an entitlement mentality.

This is a skill I have in spades, while I suck at picking winning stocks and timing the buying and selling thereof. I would lose far more sleep worrying about the collapse of my portfolio than a renter not paying me (besides, you can get them evicted in 4 weeks in Georgia).

 

[edorr]

Knowledge is essential. Paulsen didn't have enough of it and his risk tolerance was out of sync with his capital account and with reality. When guys blow up it is because of a deficiency in one of the three things I mentioned.

I'm not buying it. Paulsen is a smart guy and a professional investor. What particular knowledge did he lack about gold that induced him to make the wrong bets?

 

[mep]

I guess the bottom line is that there are other opportunities to make money outside of the market, but many of them involve exploiting the poor and disadvantaged. My brother used to have a business of selling prepaid cell phones and phone cards to those who couldn't qualify for a regular cell phone contract which includes a cool phone at a modest price. Their are lots of loan sharks who are in the business of Pay Day loans which put people in a debt cycle they can never escape from. I'm just not interested in capitalizing on the financial misery of people who are down and out and nor do I want to be involved in their troubles.

I find it ironic that people who make the least amount of money have to work the hardest and they pay the most for everything. It's not a fair system.

 

[mep]

This is a skill I have in spades, while I suck at picking winning stocks and timing the buying and selling thereof. I would lose far more sleep worrying about the collapse of my portfolio than a renter not paying me (besides, you can get them evicted in 4 weeks in Georgia).

In lots of states you can't evict them that quickly. And meanwhile back at the ranch while you are awaiting the eviction notice to take effect, they are totally trashing your property.

 

[edorr]

In lots of states you can't evict them that quickly. And meanwhile back at the ranch while you are awaiting the eviction notice to take effect, they are totally trashing your property.

If you rent to a deadbeat this is a real risk. The point is not to rent to a deadbeat.

 

[edorr]

I guess the bottom line is that there are other opportunities to make money outside of the market, but many of them involve exploiting the poor and disadvantaged. My brother used to have a business of selling prepaid cell phones and phone cards to those who couldn't qualify for a regular cell phone contract which includes a cool phone at a modest price. Their are lots of loan sharks who are in the business of Pay Day loans which put people in a debt cycle they can never escape from. I'm just not interested in capitalizing on the financial misery of people who are down and out and nor do I want to be involved in their troubles.

I find it ironic that people who make the least amount of money have to work the hardest and they pay the most for everything. It's not a fair system.

I would not be able to live with myself running a title loan operation charging 25% interest, or renting out a dump I bought for $30K for $800 a month (the sweetspot if you want to make real money in the rental business). However, I don't lose any sleep renting out say a less than 10 year old impeccably maintained 2500 Sqft property for $1100 a month to say a healthcare worker making $5k a month.

 

[mep]

If you rent to a deadbeat this is a real risk. The point is not to rent to a deadbeat.

And my point is that besides their credit history, how do you tell? Some people don't start off as deadbeats, but they become deadbeats. Some people are just waiting to become deadbeats. Again, you can make money buying properties and renting them out. I'm just not willing to put up with the nonsense in order to make the money.

 

[mep]

I would not be able to live with myself running a title loan operation charging 25% interest, or renting out a dump I bought for $30K for $800 a month (the sweetspot if you want to make real money in the rental business). However, I don't lose any sleep renting out say a less than 10 year old impeccably maintained 2500 Sqft property for $1100 a month to say a healthcare worker making $5k a month.

Something is not making sense here. If you have a renter who is making $5K a month, they can get a loan to buy their own house. As for charging 25% interest, some of the loan sharks preying on the poor are charging usury rates that are far, far higher. Charging $1100 per month to rent out a 2500 sq ft house is a bargain.

 

[edorr]

And my point is that besides their credit history, how do you tell? Some people don't start off as deadbeats, but they become deadbeats. Some people are just waiting to become deadbeats. Again, you can make money buying properties and renting them out. I'm just not willing to put up with the nonsense in order to make the money.

Trust me. You can tell. Everyone aspiring to be a deadbeat has it written all over them. Besides, I am far more worried about the fine upright citizens running my health insurance company trying to screw me should I ever need expensive medical treatment, than a hard working single mom trying to screw me out of my rent check.

 

[edorr]

Something is not making sense here. If you have a renter who is making $5K a month, they can get a loan to buy their own house. As for charging 25% interest, some of the loan sharks preying on the poor are charging usury rates that are far, far higher. Charging $1100 per month to rent out a 2500 sq ft house is a bargain.

Lots of people making $5K either have destroyed their credit and cant get a loan - or don't want to buy.

 

[treitz3]

Many times, one does not want a commitment to any one property or location. It's not for everybody but I have seen far too many folks who do not want to buy. If they ever want to leave? Pay the rent cancellation fee, moving costs and they are gone. It's not that simple when you own a house.

Tom

 

[audioguy]

If you win, this does not imply you know what you are doing.

That is true in MANY areas, including sports !!

 

[Whatmore]

Fed pumped money into the economy. Adding money with no value causes inflation. Rising water lifts all boats.

Welcome to Argentina!

pah! The Fed's been printing money for the past 4 years and the dow has rallied 230% from its lows
The BOJ starts their QE and the Nikkei is up about 170% in a few months

 

[andromedaaudio]

I dont know about the US but the dutch market just made a double top at 373-375 from the 2008 crash on .
With the fed talking about tightening we might just have topped in the US as well.
the AEX is more or less the slave of the US market off course, but the patterns arent the same