Monday, March 24, 2008

News from Wall Street is Wild this past week

The New York stock exchange has too high an opinion of it's self. Your stock broker will say to diversify. But he will mean to diversify in different stocks. That is not really diversification. You also need Real Estate. I believe that Income Producing Real Estate is still stronger than any equity paper on any stock exchange.

Just work out your Net Worth. Then look at the % in stocks & bonds. And the % in real estate. Next take your home equity out of the picture. How much of your wealth (equity) is in Income Producing property? If it is not a high enough % then let me know what you want to do about that.

The Hot News...

Bonds and home loan rates wildly rocketed higher and plummeted lower on a daily basis throughout the last week. In the end fixed home loan rates ended up improved by about .25% for the week

The big news from the Office of Federal Housing Enterprise Oversight (OFHEO), who announced that they lifted special capital restrictions that had been put in place for both Fannie Mae and Freddie Mac. This will allow these firms to pump $200 Billion into the mortgage market by way of buying Mortgage Bonds. The anticipated increase in demand was very good news for Bonds and home loan rates, which immediately improved on the news.

So income property loans may get better too.

IMHO Keith L.

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