Real Estate

Home Prices Fall for 6th Straight Month

Housing is front and center today with the release of the Case-Shiller 20-City Home Price Index for January. As expected, housing showed further weakness with only Washington D.C. showing positive growth. San Diego and Washington D.C. are the only cities where home prices have risen year-over-year. On the downside, 4 of the 20 cities in the index- Atlanta, Las Vegas, Cleveland, and Detroit- are now below 2000 price levels. Housing is clearly in…

100% Returns

I’ve learned over the years what to look for in potential 100%  investments, or as Peter Lynch would say, the double baggers. If the public largely agrees with your thesis, watch out: you may return 100%, but it is likely you are profiting from the tail end of a bubble. This means you can just as easily lose 50%. On the other hand, if the public lectures you about why your investment…

State Workers Retiring En Masse

The debt crisis at the state and federal level is going to create many unforeseen problems. One such problem that is coming to light is the early retirement of public sector workers who fear their benefits will be restructured in the years ahead. Some people will say this is beneficial because these workers will be replaced with younger workers with less generous benefits. However, the problem isn’t the structure of…

Real Estate Depression Continues

The real estate market holds the key to an economic recovery. More people invest more of their life’s earnings in real estate than in other asset class. Stocks can rise 100% in a year and people are still justified in questioning the economic recovery. If home prices rose 100% in a year, economic activity would reach a feverish pitch. Housing should be your focus because it is the government’s focus…

Debt at Tipping Point?

Dallas Fed President Richard Fisher stirred up some controversy today by saying the U.S. debt situation is at a tipping point. While I strongly believe this is the case, I did not expect a Fed official to actually state the obvious. I have grown accustomed to the head-in-the-sand brand of economic forecasting, led by Helicopter Ben, that has characterized the Fed throughout this crisis. Anyway, it was refreshing to hear a dose of…