When all you read is gloom, turn here for a much different perspective.

Thursday, December 4, 2008

Bottom Feeding...

And the market keeps testing the bottom.

Tomorrow folks will wake up and see that alas, the market is way oversold yet again.

So two more developments seem highly likely.... much lower mortgage rates as the powers that be consider plans to lower long term rates to 4.5%. I never dreamed I would see that in my lifetime. It is surreal.

Looks like next week short term rates will come down another 1/2 percent. For folks with adjustable rate mortgages and any type of debt tied to the prime rate, monthly cash flow should be better right now than at any time in the last several years.

So, gas prices are way down. Mortgage payments are way down. Credit card payments are way down. Credit to the consumer, home buyers, and investors is flowing nicely.

This is not the great depression my friends. This is a buyers' market. Buy some stock. Buy some investment real estate. Buy oil if if you must, but buy something of tangible value. You will probably never see it's price this low again.

While others are lamenting their paper losses and moving their 401Ks into bonds and money markets, the time is ripe to move money in to depressed assets.

I am betting that 2 years from now you will be incredibly glad you took the counter-intuitive risk.
It's good news.

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