[Coronita]

Bump…

I think the drunken stupor party over isn’t. It might be just starting… I wonder what Europe will do… Seems to me it’s going to force their hand….

http://americasmarkets.usatoday.com/2014/10/31/japan-pension-fund-ups-stocks-slice-in-investment-pie/

The Bank of Japan’s surprise move to boost its stimulus programs wasn’t the only news out of Tokyo to propel global stock prices higher. A giant Japanese pension fund also gave bulls reason to cheer when it said it plans to amp up its stock holdings.

The BoJ’s unexpected decision to fight deflation by mounting a more aggressive stimulus program, via bigger purchases of government bonds and purchases of stocks via exchange traded funds and real estate investment trusts, got most of the credit for today’s stock rally. A decision by Japan’s big pension fund to buy more stocks and less bonds amounted to what Citigroup calls a “double shock” of bullish news for global markets.

“The Bank of Japan and the Government Pension Investment Fund (GPIF) surprised markets,” Citigroup’s Asia Pacific investment strategist Ken Peng and Steven Wieting, the firm’s global chief investment strategist, told clients in a research note.

Indeed the double whammy of “additional significant monetary stimulus” — the BoJ increased its asset purchase targets by 64% — and a “major shift in asset allocation towards higher-risk assets” by GPIF sparked a big rally around the world and on Wall Street.

The reason: the BoJ’s additional stimulus is viewed as an economic positive, while the GPIF’s decision to up its stock holdings means there’s a new big buyer of stocks, which creates fresh demand for stocks. The GPIF manages 127 trillion yen, which equates to $1.13 trillion U.S. dollars.

Indeed, the big pension fund’s decision to double its target of stock holdings was also a boon for stock market sentiment.

The pension fund plans on doubling its holdings in both Japanese and foreign stocks, which would increase its total stock allocation to 50%, from 25%. A 50% stock allocation equates to roughly $565 billion U.S. dollars in buying power. See chart below for the new allocations, which include bigger helpings of stocks and smaller helpings of bonds. Pension funds like the GPIF, need bigger returns to meet their obligations.

[Coronita]

Wow. That was a strong close….

Cool.

[Coronita]

[quote=spdrun]Yeah you can. Two words for you.
BMW.
Z4.[/quote]

That’s not really a sports car… There’s a reason why it’s not an M.

[Coronita]

[quote=AN][quote=flu][quote=The-Shoveler]I still got a good vibe feeling going for USA,

IE economy starting to ramp up these days (fastest growing economic area in California now).

L.A. ports at record volume.

Manufacturing being on shored now.

Feels good to me.

I think I will buy a little silver just because (nearing 5 year low).[/quote]

Maybe the cost of a porsche will go down now…. The y aren’t made in the USA, so maybe a stronger dollar is a good thing…And just in time to… 2016 991s mid-cycle refresh might see more power with turbos.. Who am I kidding…..[/quote]I hope this trend continues for awhile. Would be great for those of us who loves to travel. My $ will go a lot further now than it used to. I’m planning to go to Japan next year, so hopefully the Yen will keep on sinking against the dollar. Same with the Euro.

As for your Porsche, I’m not holding my breath. If anything, it just means Porsche profit will be higher, since cost of production (in Euro) vs sale price (in $) will be lower. I do like the trend of everything going turbo though. Too bad the Japanese are dragging their feet in this department.[/quote]

Rumor has it Mazdaspeed 3 coming with 300hp…. Now if they did that to the ND miata… Then it would get very very interesting…

The Bimmer 3 and 4 series are going to be refreshed soon with the LCI update…

Two engines…
328/428 will change to 330/430 and get a B48 engine : 2.0 turbo 4

335/435 will change to 340/440 will get a new B58 engine 6 cylinder turbo

[Coronita]

[quote=The-Shoveler]I still got a good vibe feeling going for USA,

IE economy starting to ramp up these days (fastest growing economic area in California now).

L.A. ports at record volume.

Manufacturing being on shored now.

Feels good to me.

I think I will buy a little silver just because (nearing 5 year low).[/quote]

Maybe the cost of a porsche will go down now…. The y aren’t made in the USA, so maybe a stronger dollar is a good thing…And just in time to… 2016 991s mid-cycle refresh might see more power with turbos.. Who am I kidding…..

[Coronita]

….So it looks like the Bank of Japan is going to be kicking the can down the road… Futures up bigtime…

http://finance.yahoo.com/news/asia-shares-edge-brightening-us-003958389.html

I guess when the Fed ends stimulus some other sovereignty needs to …heh heh…

Meanwhile, gold/silver getting crushed.

[Coronita]

[quote=livinincali][quote=flu]People keep predicting a doomsday in the near term and that the Fed and government can kick the can down the road only so many more times.

I think it’s pretty evident, however, just how long and how far the Fed and our government can and will kick the can down the road… They are a can kicking guru, and will do the same thing over and over again if needed.
[/quote]

They managed to blow a bubble for 6 years after the NASDAQ bubble burst. We’re really only into this current bubble about 5-6 years. It’s kind of funny that we get really confident in their ability to control and manage everything right about when the bubble pops again. I remember how confident everybody was about subprime being contained back in 2007. We’re probably pretty close to being there again and we just completely ignore what happened last time thinking it’s different this time. Most of us have been through 2 big bubbles and here we are again saying it’s not a bubble. I guess we like to forget.[/quote]

but after the bubble did burst….where are we now?

How many people the held on really got hurt in both cases?

[Coronita]

People keep predicting a doomsday in the near term and that the Fed and government can kick the can down the road only so many more times.

I think it’s pretty evident, however, just how long and how far the Fed and our government can and will kick the can down the road… They are a can kicking guru, and will do the same thing over and over again if needed.

So I wouldn’t hold my breath nor bet against the house….House always wins..

Maybe things will fall apart 40-50+ years from now. But at that point I’ll either be dead or eating out of a straw, so I won’t care anymore….

There’s one thing I find interesting… Especially about real estate. Most of the buyers in recent times have been financially stronger. So what real hurry would they have to sell?

Now bring back subprime, stated income buying, and have those subprime borrowers drive up home prices again to levels they cannot afford/sustain, then I’ll say we have a problem (again)…

[Coronita]

Congrats!

For the inspector, I’ll send you a PM about the one I used for a short sales about 2 years ago… He was referred to me…

[Coronita]

Nina Pham is cured… That’s good news.

http://www.cnn.com/2014/10/24/health/ebola-nurse/index.html?hpt=hp_t1

Also Vinson seems to be almost there too…

Good news.

[Coronita]

There are always exceptions to the rule dude….
I’m living proof of it….

[Coronita]

No way man. I’m a miserable failure!

[Coronita]

Lol…..

http://finance.yahoo.com/news/u-regulator-targeting-lower-down-192959377.html

U.S. regulator targeting lower down payments on mortgages

LAS VEGAS, Oct 20 (Reuters) – The regulator of Fannie Mae and Freddie Mac said on Monday it was developing rules to let Americans buy homes with down payments as low as 3 percent, part of a push to boost access to credit.

A lot of people in this country really didn’t learn shit from the housing crisis, did they?

Oh well, spend away… and Print baby print!

[Coronita]

[quote=kev374]The alternative is that housing prices will fall due to lack of demand… since incomes are not rising the demand has to be created somehow.[/quote]

I said it before and I said it again…

Don’t worry. I’m sure there will be a larger subprime borrowing program that will eventually follow once this second way of “buyers” saturates too…

Financial institutions make more money on subprime lending then they do on prime lending, so I doubt subprime is going to stay in the backseat always…
We can see

Kinda reminds me of the joke someone said once…

“The best way to accumulate $1million in wealth… Is to first start out with $990,000 and…”

[Coronita]

My favorite parts of the article

[quote]
…Investors paying all cash for foreclosed properties buoyed housing markets for several years, but a decline in distressed sales and rising home prices have reduced those once common transactions.

…The California Assn. of Realtors last week projected that home sales in the state this year would fall nearly 65,000 short of their initial forecast, in part because of tighter mortgage lending.

…At No. 1 mortgage lender Wells Fargo & Co., Chief Financial Officer John R. Shrewsberry said this week that the standoff over mortgage repurchases has created two mortgage markets, only one of which — for affluent borrowers with well-established credit — serves borrowers well.

…The low- to middle-income and minority borrowers most often thwarted by the tougher lending standards are also the same people who were hit hardest in the mortgage crisis, said Paul Leonard, California director of the Center for Responsible Lending.

…”Those folks took it on the chin the hardest and have been least able to get up off of the mat,” Leonard said. “That’s a serious challenge in terms of building wealth.”
[/quote]

My translation of this is:

…Now that the all cash/well financed buyers have stopped purchasing their cheaper REO and short sales properties, and now that home buying is slowing

…let’s relax lending standards so people with less than stellar credit and can now take out loans to buy homes that are now much more expensive…

…so that all the people that were able to buy with cash or were well financed buyers that bought at a much lower price can sell to people that have been locked out of their purchase….

…so that people who couldn’t qualify to buy when prices were cheap can help continue to build the wealth of well financed, first wave buyers….

…as these new buyers lock into a loan for a property that is priced much higher now than before…

…so that we can continue to maintain higher home prices, with a steady pool of people that want to buy….

Cant say I didn’t see this coming eventually after the first way of buyers started to saturate…

[Author]

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