what asset classes are unloved and cheap currently?

[sdrealtor]

[quote=cantab][quote=sdrealtor]FWIW houses that i have seen are not close to 2X’s 1996 prices adjusted for inflation. Maybe 2X’s 1996 prices but not adjusting for inlfation. Not sure if that is what you meant to say but its not the case that i can see.[/quote]

In Pacific Beach and La Jolla, houses are selling easily for three times their 1996 or 1997 prices. 3x nominal equals 2x inflation-adjusted, approximately.

Here is an example:
http://www.redfin.com/CA/La-Jolla/1110-W-Muirlands-Dr-92037/home/4916121

1110 West Muirlands Drive in La Jolla sold for $340,000 in early 1997. It had languished on the market for many months. Ocean view, backs to golf course. It’s had a major remodel since 97, but not recently. In 2008 the owners listed it for over $2M. It didn’t sell, but it would sell instantly now at over $1M.[/quote]

If a house on the La Jolla Country Club sold for $340K in an open market sale during 1997, I’ll eat that one a 2X4 at a time also. In 1997, tract houses in Encinitas were selling for that. Sorry CantaB, bad answer.

[CA renter]

[quote=KSMountain]

I have to admit I’ve slept better since I took your advice. :)[/quote]

Very kind of you to say that, KSMountain — especially since cash is effectively offering such a non-existant/negative return. 🙂

It will be interesting to see how they handle the public finance issues. It’s really wobbly right now, and I’m surprised it’s not really talked about as much as it should be (IMHO). Not to beat the drum too much, but I really think the public sector will lead the next leg down. The states and municipalities are beginning to enact some of their own “austerity measures” right now. We’ll see how things pan out.

Yes, I hear you on the very painful returns on cash. Like Arraya pointed out, it is all about decimating the savers right now. Who knows how long it can go on?

If the states/municipalities start wobbling (and I’m quite certain they will at some point — they already are, in many cases), it’s entirely likely they’ll be bailed out, too. Still, I’ve been trying to stay away from municipal bonds because there is a significant amount of risk there, IMHO.

[CA renter]

[quote=KSMountain]

I have to admit I’ve slept better since I took your advice. :)[/quote]

Very kind of you to say that, KSMountain — especially since cash is effectively offering such a non-existant/negative return. 🙂

It will be interesting to see how they handle the public finance issues. It’s really wobbly right now, and I’m surprised it’s not really talked about as much as it should be (IMHO). Not to beat the drum too much, but I really think the public sector will lead the next leg down. The states and municipalities are beginning to enact some of their own “austerity measures” right now. We’ll see how things pan out.

Yes, I hear you on the very painful returns on cash. Like Arraya pointed out, it is all about decimating the savers right now. Who knows how long it can go on?

If the states/municipalities start wobbling (and I’m quite certain they will at some point — they already are, in many cases), it’s entirely likely they’ll be bailed out, too. Still, I’ve been trying to stay away from municipal bonds because there is a significant amount of risk there, IMHO.

[CA renter]

[quote=KSMountain]

I have to admit I’ve slept better since I took your advice. :)[/quote]

Very kind of you to say that, KSMountain — especially since cash is effectively offering such a non-existant/negative return. 🙂

It will be interesting to see how they handle the public finance issues. It’s really wobbly right now, and I’m surprised it’s not really talked about as much as it should be (IMHO). Not to beat the drum too much, but I really think the public sector will lead the next leg down. The states and municipalities are beginning to enact some of their own “austerity measures” right now. We’ll see how things pan out.

Yes, I hear you on the very painful returns on cash. Like Arraya pointed out, it is all about decimating the savers right now. Who knows how long it can go on?

If the states/municipalities start wobbling (and I’m quite certain they will at some point — they already are, in many cases), it’s entirely likely they’ll be bailed out, too. Still, I’ve been trying to stay away from municipal bonds because there is a significant amount of risk there, IMHO.

[CA renter]

[quote=KSMountain]

I have to admit I’ve slept better since I took your advice. :)[/quote]

Very kind of you to say that, KSMountain — especially since cash is effectively offering such a non-existant/negative return. 🙂

It will be interesting to see how they handle the public finance issues. It’s really wobbly right now, and I’m surprised it’s not really talked about as much as it should be (IMHO). Not to beat the drum too much, but I really think the public sector will lead the next leg down. The states and municipalities are beginning to enact some of their own “austerity measures” right now. We’ll see how things pan out.

Yes, I hear you on the very painful returns on cash. Like Arraya pointed out, it is all about decimating the savers right now. Who knows how long it can go on?

If the states/municipalities start wobbling (and I’m quite certain they will at some point — they already are, in many cases), it’s entirely likely they’ll be bailed out, too. Still, I’ve been trying to stay away from municipal bonds because there is a significant amount of risk there, IMHO.

[CA renter]

[quote=KSMountain]

I have to admit I’ve slept better since I took your advice. :)[/quote]

Very kind of you to say that, KSMountain — especially since cash is effectively offering such a non-existant/negative return. 🙂

It will be interesting to see how they handle the public finance issues. It’s really wobbly right now, and I’m surprised it’s not really talked about as much as it should be (IMHO). Not to beat the drum too much, but I really think the public sector will lead the next leg down. The states and municipalities are beginning to enact some of their own “austerity measures” right now. We’ll see how things pan out.

Yes, I hear you on the very painful returns on cash. Like Arraya pointed out, it is all about decimating the savers right now. Who knows how long it can go on?

If the states/municipalities start wobbling (and I’m quite certain they will at some point — they already are, in many cases), it’s entirely likely they’ll be bailed out, too. Still, I’ve been trying to stay away from municipal bonds because there is a significant amount of risk there, IMHO.

[investor]

Couldn’t agree more. cantab: IMHO read and consider the “aftershock” book if you are looking for a 5-10 year plan on investing. If the author is anyway near correct, and he was in 2005 with his first book on where we are today, gold/silver will skyrocket as will LEAPS, then gold will collapse in the biggest bubble of them all. Real estate will become very cheap and around 2016-2019, will begin to be purchased by money outside our country since the dollar bubble and american debt bubble have already popped.
This is my strategy. Pay aff all debt, including your home (in case you loose your job). Buy gold/silver (not EFT’s, bullion or coins) now for the bubble and then cash out when gold is at $10,000 to $20,000 (sometime around 2015, and go ahead and make fun of this projection) and buy real estate that cash flows around 2016-2019.It’s dire but if winter is coming and you are preparing for summer…..

[investor]

Couldn’t agree more. cantab: IMHO read and consider the “aftershock” book if you are looking for a 5-10 year plan on investing. If the author is anyway near correct, and he was in 2005 with his first book on where we are today, gold/silver will skyrocket as will LEAPS, then gold will collapse in the biggest bubble of them all. Real estate will become very cheap and around 2016-2019, will begin to be purchased by money outside our country since the dollar bubble and american debt bubble have already popped.
This is my strategy. Pay aff all debt, including your home (in case you loose your job). Buy gold/silver (not EFT’s, bullion or coins) now for the bubble and then cash out when gold is at $10,000 to $20,000 (sometime around 2015, and go ahead and make fun of this projection) and buy real estate that cash flows around 2016-2019.It’s dire but if winter is coming and you are preparing for summer…..

[investor]

Couldn’t agree more. cantab: IMHO read and consider the “aftershock” book if you are looking for a 5-10 year plan on investing. If the author is anyway near correct, and he was in 2005 with his first book on where we are today, gold/silver will skyrocket as will LEAPS, then gold will collapse in the biggest bubble of them all. Real estate will become very cheap and around 2016-2019, will begin to be purchased by money outside our country since the dollar bubble and american debt bubble have already popped.
This is my strategy. Pay aff all debt, including your home (in case you loose your job). Buy gold/silver (not EFT’s, bullion or coins) now for the bubble and then cash out when gold is at $10,000 to $20,000 (sometime around 2015, and go ahead and make fun of this projection) and buy real estate that cash flows around 2016-2019.It’s dire but if winter is coming and you are preparing for summer…..

[investor]

Couldn’t agree more. cantab: IMHO read and consider the “aftershock” book if you are looking for a 5-10 year plan on investing. If the author is anyway near correct, and he was in 2005 with his first book on where we are today, gold/silver will skyrocket as will LEAPS, then gold will collapse in the biggest bubble of them all. Real estate will become very cheap and around 2016-2019, will begin to be purchased by money outside our country since the dollar bubble and american debt bubble have already popped.
This is my strategy. Pay aff all debt, including your home (in case you loose your job). Buy gold/silver (not EFT’s, bullion or coins) now for the bubble and then cash out when gold is at $10,000 to $20,000 (sometime around 2015, and go ahead and make fun of this projection) and buy real estate that cash flows around 2016-2019.It’s dire but if winter is coming and you are preparing for summer…..

[investor]

Couldn’t agree more. cantab: IMHO read and consider the “aftershock” book if you are looking for a 5-10 year plan on investing. If the author is anyway near correct, and he was in 2005 with his first book on where we are today, gold/silver will skyrocket as will LEAPS, then gold will collapse in the biggest bubble of them all. Real estate will become very cheap and around 2016-2019, will begin to be purchased by money outside our country since the dollar bubble and american debt bubble have already popped.
This is my strategy. Pay aff all debt, including your home (in case you loose your job). Buy gold/silver (not EFT’s, bullion or coins) now for the bubble and then cash out when gold is at $10,000 to $20,000 (sometime around 2015, and go ahead and make fun of this projection) and buy real estate that cash flows around 2016-2019.It’s dire but if winter is coming and you are preparing for summer…..

[patb]

[quote=XBoxBoy][quote=cantab]Despite the recent declines, it’s hard to see any asset classes that are really cheap now by historical standards.[/quote]

That’s exactly what happens when the government floods the market with cheap money. Too much money chasing too few good investments. Sadly, I don’t think there are any good assets to be bought at cheap prices. Wish it wasn’t so, but sure seems that way to me.

XBoxBoy[/quote]

phoenix/vegas real estate.

west florida beach property

[patb]

[quote=XBoxBoy][quote=cantab]Despite the recent declines, it’s hard to see any asset classes that are really cheap now by historical standards.[/quote]

That’s exactly what happens when the government floods the market with cheap money. Too much money chasing too few good investments. Sadly, I don’t think there are any good assets to be bought at cheap prices. Wish it wasn’t so, but sure seems that way to me.

XBoxBoy[/quote]

phoenix/vegas real estate.

west florida beach property

[patb]

[quote=XBoxBoy][quote=cantab]Despite the recent declines, it’s hard to see any asset classes that are really cheap now by historical standards.[/quote]

That’s exactly what happens when the government floods the market with cheap money. Too much money chasing too few good investments. Sadly, I don’t think there are any good assets to be bought at cheap prices. Wish it wasn’t so, but sure seems that way to me.

XBoxBoy[/quote]

phoenix/vegas real estate.

west florida beach property

[patb]

[quote=XBoxBoy][quote=cantab]Despite the recent declines, it’s hard to see any asset classes that are really cheap now by historical standards.[/quote]

That’s exactly what happens when the government floods the market with cheap money. Too much money chasing too few good investments. Sadly, I don’t think there are any good assets to be bought at cheap prices. Wish it wasn’t so, but sure seems that way to me.

XBoxBoy[/quote]

phoenix/vegas real estate.

west florida beach property

[Author]

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