Don't miss the bus....I mean.....bust

[allagash]

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3585763&cmd=show[s180937054]&disp=O

-Mike

[propertymanager]

Yep, it's all common sense!  We're going to pay the price for all these decades of wreckless over-spending.  It isn't going to be pretty!

Mike

[allagash]

chart 130 speaks volumes...talk about a dead dog...

-Mike

[rookieNYC]

is it safe to assume that both of you are ma$$ively short equities then?

[allagash]

with all that SHORT term stimulus?

Hell no!

-Mike

[rookieNYC]

You guys are great...I love this banter on this site..

I will say this much..If you arent going to invest during dips in the economy,real estate market,stock market...Then when do you buy???..Dont forget the line that Buffet made his billions from...Be fearful when others are greedy and greedy when others are fearful...I would say others are fearful now...So I have been greedy all of 2009 and plan to follow the same rule in 2010..

What is the sense of following all these internet gurus and doomsday scenarios if you dont plan to profit from them?..I say this to Mike propertymanager who I respect a ton..Isnt posting all this jargon pointless if you arent willing to put your money where your mouth and opinion is...Lets be for real most of us here are capitalists and looking for ways to make money..There is more oppurtunity in the current economic scenario than there has been the last 10 years..In your state alone Ohio there has been utter devastation in the real estate market yet I havent heard you buy a single property..Dont you believe in buy em when they hate em.??..

[allagash]

You guys are great...I love this banter on this site..

Just glad you came along...when you did.  Definately sped up my learning curve.

I prefer tacos de trompo.

Was in Monterrey a few weeks ago...brother-in-law took me to a great outside taco stand...situated across the street from a cemetery......

Name of the place.....Tacos del Muerto.  Place was packed. 

Always good to get outside the comfort zone.

-Mike

[Hoosier4life2005]

Rookie, I agree the majority of us are capitalists looking for ways to make money (except for Furnished).  However, its possible to understand that this country is in DEEP trouble, while personally being successful.

Like me, I believe this country is going to GET BAD.  HOWEVER, Im not going to keep that from allowing me to make money.  I think thats the mindset alot of people have on this site.

[rookieNYC]

Hoosier no disrespect meant by this but you are 18 years old..If you are a capitalist as you claim and 18 years old you more than anyone should be buying HEAVY into this economic mess because you have more time to ride this out and look smart down the road..Out of sheer curiousity where did you make all your money in 2009?

[propertymanager]

I say this to Mike propertymanager who I respect a ton..Isnt posting all this jargon pointless if you arent willing to put your money where your mouth and opinion is...Lets be for real most of us here are capitalists and looking for ways to make money..There is more oppurtunity in the current economic scenario than there has been the last 10 years..In your state alone Ohio there has been utter devastation in the real estate market yet I havent heard you buy a single property..

Rookie,

I didn't buy any properties in 2009, but that wasn't because of the economy.  The simple reason is that I have reached my goal and don't want any more rentals.  As you know, I manage and maintain all my rentals myself and have reached the exact balance between work and money that I want.  As I've said before, I typically work 12-16 hours a week, which leaves a lot of time to do the things I enjoy (and that's exactly the way I want it).

As for the stock market, I'm completely in cash.  As I've posted before, I was buying stock and selling covered calls most of the way up, but now believe that the market is severly overpriced (considering that I believe that the economy will collapse).  I FULLY REALIZE that I could miss any upside and that the deterioriating dollar could indeed make the market rise (quite possibly significantly).  I'm willing to miss the upside in exchange for missing the downside risk. 

I am also walking the walk when it comes to being prepared.  I am stockpiling food, water, and ammo (reloading supplies) in preparation for the collapse that I believe will happen in the next 2 or 3 years (hopefully later as I still have some preparation to do).  You'll note that the preparation I'm doing is EXACTLY in line with recommendations by the Federal Government and that I'm not predicting the end of the world.  Ironically, I'm ready for the end of the world, but not yet ready for an economic and societal collapse.

The optimistics claim that this is all just part of a normal cycle.  I AGREE!  This is part of a normal cycle, but it's not an economic cycle, it's the natural cycle that all great nations endure.  There is a beginning for the country; a period of great success and power; and the demise of the country.  We are currently in the demise phase - PERFECTLY NATURAL!

[Hoosier4life2005]

Hoosier no disrespect meant by this but you are 18 years old..If you are a capitalist as you claim and 18 years old you more than anyone should be buying HEAVY into this economic mess because you have more time to ride this out and look smart down the road..Out of sheer curiousity where did you make all your money in 2009?

I made a whopping $600-700 dollars roofing last year.  Thats how I made my money is 2009

Im in school, I have no money/time to invest.  I graduate soon enough though, and I KNOW there is opportunity to make money out there.  This doesnt mean our country is not in trouble though.  Thats all I really meant.

[phlemboy]

I wish I was 18 again! Hoosier, if I remember correctly, you're in Nursing school. If I can make a suggestion; I think it's a good idea to get a job working nights or evenings so you can concentrate on learning how to put your money to work. Over the past year or so, I've learning all I can stock investing/trading. It's a huge undertaking but I feel its worth it. There are many good books and courses but having real money on the line has taught me the most. I feel I've just scratched the surface but I wish i had done this years ago! You're in a great position. Take advantage of it!

[rookieNYC]

mike sorry i dont buy that you met your quota..what re investor isnt salivating at the thought of buying a cashflow property at depressed levels to create higher roi...not even 1 more property????...cmon...so im to understand that you are making no investments into this end of the world scenario????..Im also suppose to believe that you are preparing for the end of the world scenario because the federal government said to do so???..If its possible could please post the link to federal government website that advises americans to do this...i clearly have missed this news flash..and im suppose to believe that you feel the end of modern day capitalism is coming and you arent attempting to unload any of the properties that you own that will be simply worthless with dead tenants for what reason????...surely you could use the extra capital to build a serious underground bunker and stock it accordingly...these conversations baffle me to put it mildly...please post that link for me...ty...

[John_in_NC]

I undersand him completely. At 14 units I've reached my max with my "full time" job as a pilot. In my area, the deals of 2008 were just not here in 2009. I only bought one property this year. I just don't want to deal with anymore deadbeats than I have right now. 
 
I'm with you rookie though. It would be AWESOME to pick up a commercial property at 50 cents on the dollar. There has been a few in my target area that have gone to bank REO's. But the banks just aren't listing them.  Good luck getting financed right now though, my bank sounds pretty iffy right now.

[propertymanager]

mike sorry i dont buy that you met your quota..what re investor isnt salivating at the thought of buying a cashflow property at depressed levels to create higher roi...not even 1 more property????...

Sorry that you're not buying it Rookie, but that's the truth.  I am not salivating at buying any more cash flow properties.  What I am salivating for is the day when the property I have is all paid off.  I'm paying down debt as fast as I can and I don't intend to buy any more rentals.  i'm at the perfect number of rentals for me.

cmon...so im to understand that you are making no investments into this end of the world scenario????..Im also suppose to believe that you are preparing for the end of the world scenario because the federal government said to do so???

I know I've said this MANY times before, but it's obviously not sticking.  I'll try again.  THERE IS NO END OF THE WORLD SCENARIO!  If the world ends, you don't need to prepare (except to be sure that you're right with your maker).

If its possible could please post the link to federal government website that advises americans to do this...i clearly have missed this news flash..

I don't know how you missed it, the government has spent millions of dollars promoting preparedness.  Here's the website:

http://www.ready.gov/america/getakit/index.html

Of course, they don't talk about guns and ammo - that's politically incorrect!

and im suppose to believe that you feel the end of modern day capitalism is coming and you arent attempting to unload any of the properties that you own that will be simply worthless with dead tenants for what reason????...

Dead tenants?  Who said anything about dead tenants?  I think rentals will be one of the best businesses to be in during a crisis.  People still have to live somewhere and the government will probably subsidize rentals til the very end.  Once people have no-place to live, there will be rioting in the streets and a revolution.  The government will do EVERYTHING they can to prevent that, and that will mean keeping a roof over people's heads.

surely you could use the extra capital to build a serious underground bunker and stock it accordingly...

I don't need a bunker.  I'm perfectly capable of taking care of myself above ground.

these conversations baffle me to put it mildly

They baffle me too.  I find it very hard to believe that people don't understand that the country is BROKE and that there will be consequences (and I'm not talking about another boom).