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Investor extraordinaire Jim Rogers has harsh words for the government's interventionist economic policy.
That policy, which he dates back to the Bush administration, verges on communism, he told Moneynews's Dan Mangru in an interview.
"America now owns the car industry. America owns the mortgage industry. America owns a lot of the insurance industry," Rogers said.
"Karl Marx must be somewhere standing up in his grave cheering."
In Asia, by contrast, "they're not doing that. In Asia, they're getting rid of state and government ownership," he said.
That policy, which he dates back to the Bush administration, verges on communism, he told Moneynews's Dan Mangru in an interview.
"America now owns the car industry. America owns the mortgage industry. America owns a lot of the insurance industry," Rogers said.
"Karl Marx must be somewhere standing up in his grave cheering."
In Asia, by contrast, "they're not doing that. In Asia, they're getting rid of state and government ownership," he said.
- Newsmax
Foreclosures are continuing to set records despite the Obama administration's $75 billion plan to help borrowers at risk of losing their homes.
There were 1.9 million foreclosure filings in the first six months of this year, a 15% increase from the first six months of 2008, according to a report today from RealtyTrac. One in 84 homes received a foreclosure filing in the first half of the year.
California led the states with the most foreclosure filings in the first half of 2009 – 391,611. That was 2.94%, or one in 34, of California's homes.
There were 1.9 million foreclosure filings in the first six months of this year, a 15% increase from the first six months of 2008, according to a report today from RealtyTrac. One in 84 homes received a foreclosure filing in the first half of the year.
California led the states with the most foreclosure filings in the first half of 2009 – 391,611. That was 2.94%, or one in 34, of California's homes.
- USA Today
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What You Should Do If Stocks Fall Farther from Here
By Dan Ferris Thursday, July 16, 2009 What You Should Do If Stocks Fall Farther from Here -
My Real Estate Wake-Up Call
By Dr. Steve Sjuggerud Wednesday, July 15, 2009 My Real Estate Wake-Up Call -
This Commodity Is About to Collapse
By Tom Dyson Tuesday, July 14, 2009 This Commodity Is About to Collapse -
This Loser Discovered How to Make Billions from the Market
By Tom Dyson Monday, July 13, 2009 This Loser Discovered How to Make Billions from the Market -
Why I'm Happy to Hold Wealth in Gold and Silver
By Chris Weber Saturday, July 11, 2009 Why I'm Happy to Hold Wealth in Gold and Silver
You Won't Believe This Bear Market Is Almost Over
By Dr. Steve SjuggerudFriday, July 17, 2009
You might not admit it yourself. But it's probably true...
Three years ago, you probably believed "you can't lose money in real estate."
It's OK... just about everyone believed that. But once everyone believes that about an investment, it's time to sell!
Today, just about everyone believes bad times for real estate will never end. Once everyone believes that, it's time to buy... or close to it.
My friend, you might not believe it... But the terrible market in housing is almost over. It really is almost time to buy residential real estate. Let me show you why...
I track three main indicators to tell me the "health" of the residential housing market. They're all pretty simple to understand... and two out of three are incredibly good in their timing (the third is a good judge of value). Let's look at 'em, one by one...
First up: The number of new homes started by builders. After "housing starts" hit a bottom, home prices tend to bottom six months to a year later. Importantly... Housing starts are at a record low right now.
Builders start too many homes (when the blue line goes above 2,000) in good times. Prices peak soon after. In bad times, builders start too few homes (when the blue line goes below 1,000). A bottom in home prices follows.
Based on this chart, housing prices could bottom soon... possibly in the next 12 months.
Second: The supply of homes available for sale. This indicator is typically called "months supply." But it's really a ratio of the number of houses available for sale divided by the current rate of sales per month.
A high supply of new homes on the market causes prices to fall. (It's simple supply and demand.) Once the supply of new homes peaks and starts to come down, home prices bottom and start to rise.
Today, the supply of new homes is near a record peak, and it's coming down. So a bottom should come within the next 12 months.
Lastly: Housing "affordability." People buy homes when they're affordable. In technical terms, homes are "affordable" when the median family's income can afford the mortgage payment on the median home at current mortgage rates.
Right now, homes are more affordable than ever, based on this ratio.
Since houses have fallen so quickly in price and mortgage rates have fallen to record lows, housing affordability is at record levels. This is a great "value" indicator for housing... and value is great now.
Housing is not like the stock market. Cycles in housing move slowly. So we can wait on an uptrend to "confirm" the housing market is back before we move in.
We're lucky here... we have a few good "leading" indicators, with good track records. Of course, my indicators could deteriorate from here. But right now, they're at record levels and showing signs of improving.
It's not time to buy residential real estate... yet. But the time is darn close.
Good investing,
Steve
Three years ago, you probably believed "you can't lose money in real estate."
It's OK... just about everyone believed that. But once everyone believes that about an investment, it's time to sell!
Today, just about everyone believes bad times for real estate will never end. Once everyone believes that, it's time to buy... or close to it.
My friend, you might not believe it... But the terrible market in housing is almost over. It really is almost time to buy residential real estate. Let me show you why...
I track three main indicators to tell me the "health" of the residential housing market. They're all pretty simple to understand... and two out of three are incredibly good in their timing (the third is a good judge of value). Let's look at 'em, one by one...
First up: The number of new homes started by builders. After "housing starts" hit a bottom, home prices tend to bottom six months to a year later. Importantly... Housing starts are at a record low right now.
Builders start too many homes (when the blue line goes above 2,000) in good times. Prices peak soon after. In bad times, builders start too few homes (when the blue line goes below 1,000). A bottom in home prices follows.
Based on this chart, housing prices could bottom soon... possibly in the next 12 months.
Second: The supply of homes available for sale. This indicator is typically called "months supply." But it's really a ratio of the number of houses available for sale divided by the current rate of sales per month.
A high supply of new homes on the market causes prices to fall. (It's simple supply and demand.) Once the supply of new homes peaks and starts to come down, home prices bottom and start to rise.
Today, the supply of new homes is near a record peak, and it's coming down. So a bottom should come within the next 12 months.
Lastly: Housing "affordability." People buy homes when they're affordable. In technical terms, homes are "affordable" when the median family's income can afford the mortgage payment on the median home at current mortgage rates.
Right now, homes are more affordable than ever, based on this ratio.
Since houses have fallen so quickly in price and mortgage rates have fallen to record lows, housing affordability is at record levels. This is a great "value" indicator for housing... and value is great now.
Housing is not like the stock market. Cycles in housing move slowly. So we can wait on an uptrend to "confirm" the housing market is back before we move in.
We're lucky here... we have a few good "leading" indicators, with good track records. Of course, my indicators could deteriorate from here. But right now, they're at record levels and showing signs of improving.
It's not time to buy residential real estate... yet. But the time is darn close.
Good investing,
Steve
AN AMAZING YEAR IN RETAIL STOCKS
Several times per week, I visit the Growth Stock Wire website to check in on the "sector race."
About halfway down the page on the right-hand side, there's a column called "Sector ETFs." This list of investment funds covers the major industry sectors – like software, retail, and real estate. You can click on the "52-wk" header to sort the funds by performance. This shows you which sectors are soaring... and which ones are sinking. It's an easy way to monitor the internals of the stock market... the stuff you don't hear about on the news.
As I mentioned a few weeks ago, one of the craziest "that's not in the news" stories right now is the extraordinary strength in retail stocks. Despite collapsing housing prices... despite high unemployment... despite awful consumer sentiment, retail stocks – as measured by PMR – are among the top-performing stocks of the past year. Folks are still spending money at the Gap, Wal-Mart, and Best Buy. This fund has passed through one of the worst market crashes in history to remain flat in the past few months. Most of its sector cousins are down more than 25%.
This retail strength confirms an old saying: Only two things will survive a nuclear war: cockroaches and the American consumer. Now, let's go to the mall.
About halfway down the page on the right-hand side, there's a column called "Sector ETFs." This list of investment funds covers the major industry sectors – like software, retail, and real estate. You can click on the "52-wk" header to sort the funds by performance. This shows you which sectors are soaring... and which ones are sinking. It's an easy way to monitor the internals of the stock market... the stuff you don't hear about on the news.
As I mentioned a few weeks ago, one of the craziest "that's not in the news" stories right now is the extraordinary strength in retail stocks. Despite collapsing housing prices... despite high unemployment... despite awful consumer sentiment, retail stocks – as measured by PMR – are among the top-performing stocks of the past year. Folks are still spending money at the Gap, Wal-Mart, and Best Buy. This fund has passed through one of the worst market crashes in history to remain flat in the past few months. Most of its sector cousins are down more than 25%.
This retail strength confirms an old saying: Only two things will survive a nuclear war: cockroaches and the American consumer. Now, let's go to the mall.