Dow at 12000 - What is Driving this Market?

[allagash]

Classic fdjake:

They said POLICE would be ROBBING people of their FOOD!!!!  I did see two Cops last night trying to talk a clerk at Dunkin Donuts out of her last jelly donut, but that's not really STEALING!!

                                   

Personally, I still prefer the maple frosted variety.

With regard to stocks vs. real estate right now….you are absolutely correct.

It’s a no brainer.

That said….I’d NEVER give up the knowledge I  have about navigating the major market indexes.

That knowledge is good for the remainder of my investing life…not just a 2 to 5 year blip.

For me…the idea of sitting across the table with a financial advisor was just….to put it bluntly…..repulsive.  Wasn’t gonna happen.

About the being 2000 points away from the market’s, (DJIA), all time high of 14,000…

The 14k…will get buried relatively soon….in my opinion…like 2 to 3 years out....probably sooner.

And when it hits that 14k…..CNBC will be banging the table.

Shame on them.

It sure won’t be worth the 14k it was in ’07.  Think monetization.

At the very minimum….would much rather have my cash in SPY…than being destroyed from ensueing inflation.

Glad to see you’re raking it in with the flips….keep it coming.

-Mike
http://www.youtube.com/watch?v=CKHA2AGbXtI

[fdjake]

Mike,

Great points!!!

The thing that really impresses me about you is your TENACITY.

Almost eveery person I have ever met that wanted to learn about stock investing got tired of the TIME it requires and moved on to the other pursuits.

You've STAYED with it and you're 100% right....That KNOWLEDGE will pay you for the rest of your LIFE!!!

[allagash]

You're the cash king....

Was just really pi$$ing me off....not knowing the markets...but that chapter is now done.

Couldn't have come sooner....got other income producing endeavors to work on.

You're right....it was a royal pain in the a$$...sticking with it.

-Mike

[REIER]

by fdjake

Not ONE of these properties was ever "listed" on the MLS.  They all were found through my own methods and virtually NO ONE ever knew these properties were for sale.

Not ONE of these properties was a foreclosure.

Recently spoke to a foreclosure attorney, who handles quite a few foreclosure transactions for banks accross a few states,  she told me MOST of the REO's she processes aren't even hitting the MLS anymore, they are being dumped on select investors.

Now I know why I haven't been seeing many REO's on the MLS...most of the stuff listed in my area is the bottom of the barrell, that have been passed on and the banks are looking to use the greater fool theory. 

[fdjake]

100% right.

I would rather sit at a kitchen table with the HOME OWNER and her 27 cats (true story!)  Than with a realtor or a banker any day of the week.

I specialize is SOLVING PROBLEMS...

Dead beat, drug addicted son still living at home but Mom wants to sell and move to FLORIDA???

No problem Jake has the answer!!!

Mom signs a sales agreement with ME,  I inform "LOSER" he has 2 weeks to find another place to live and IF he does he gets $2000 from the sale proceeds to "move on with his life."  Now I know damn right well that LOSER is gonna SMOKE that $2K the SECOND his filthy hands touch it...
But I could CARE LESS!!!

Mom's happy because LOSER is gone...She's on her way to FLORIDA...NIT WIT son is happy because $2000 is more money than he's every SEEN in one place in his LIFE...

And the best part???

It didn't cost me a DIME!!!  It came out of the sale proceeds.

I do this a lot with older folks that have properties that need a ton of work.  They can't fix the house, sometimes the City or Town is on them to make repairs.  I meet them explain the wonders of RENTING!!!!!  Where they call the LAND LORD if it breaks, don't shovel snow every again!!!  (BIG winner this winter in New England!!)  and I tell them that I will GLADLY provide first and last paid DIRECTLY to their new landlord when they find their new apartment.

Of coarse my Attorney has them sign a bunch of documents that pertain to this money coming from their SALES PROCEEDS and  BOOM.....DONE!!
Their OUT, I own it and it's usually re- SOLD before they get their stuff out of boxes in the new place.

PROBLEM SOLVERS....That's what we are...

Cat Woman is another great example....She had an INSANELY BEAUTIFUL house but it had cat piss on every wall and smelled like she was manufacturing AMMONIA in the basement.

27 Cats.....She knew she had to go somewhere but was worried about the damn cats.

Long time ago I saw the VALUE in establishing a relationship with a NO KILL pet shelter....I found one...Made a nice FAT donation (tax deductable of coarse!)  and they get every critter out of every house I call them with. 

The best part???

I have them call the SELLER and INVITE them up to see where they'll be taking all the animals!!!  But here's the CLINCHER:  If the seller let's them take the animals....The SHELTER gets ANOTHER donation from ME!!!   You wouldn't BELIEVE what good salespeople these critter lovers are!!!  God I love CAPITALISM!!!

This ALWAYS seals the deal for me....Once these nuts know I'm for real and won't be throwing their 27 cats into the Bay...

They SIGN!!!

[hammertime]

Nice to see you active again FDJAKE!  i enjoy reading your posts

[rookieNYC]

After going over the last 24 months I can honestly say without a doubt that I have done better than I ever imagined...My overall portfolio is up a little over %45 in the 24 month period...My portfolio is made up of flips with owner finacing,hard money loans,business flips,some stock,reits and some other private collateralized lending...Stepping into the mix at the ugliest moment with capital made this possible...Its hard to do but in hindsight believe it or not I made mistakes also...I shouldve bought more *prime* income properties in the area I lend in...I could have built more of an income portfolio but instead concentrated on my lending business and built that up alot...I only funded *no brainer* deals and my returns didnt include some very lucrative NPN(non-perfoming note) deals I closed in 2010..The key to making money in these times is to have alot of capital and know where to put it to use..Look at who made money this year....The hedge funds that were flush with cash...The real estate investors who were flush with cash also..Know your area of expertise and have capital to put to work...The well funded are the only people who made money during this economic landslide that turned into a nice bounce...

I hate to be bullish about certain RE markets but Florida to me is a prime opp for a longterm RE play...I have watched this market pull back %75 in some areas...My thinking is if you liked Florida during the boom you have to love it now...Florida is one place where renting makes zero sense...I bought a place in Melbourne Beach for .30 on the dollar...2 blocks from the beach,screened in pool,3k sq foot house built in 2007...I paid about half of what I figure the *rebuild* cost is....Its time to buy there...

[redhawk]

The real answer to the question of what is driving this stock market is the lowering of the bond market. As institutions draw out of the bond market the money has to go somewhere, usually into the stock market to artificially drive up prices. So what we have is a crashing bond market and an artificially high stock market, and the lowest real estate market in history.
I do not know what you should do but I am buying as much real estate as I possibly can,any way that I can.
The bond market is probably going to collapse, due to all of the borrowing of local, state and federal deficits and lowering tax revenues. If it does I won't be hurt by it because I am buying ,Gold , Silver, and Real Estate, Heavy on the Real Estate.
I do not follow the institutional investors because as fdjake pointed out by the time we can get in on it the money has already been made. If property manager is right with doomsday theory, I will have solid assets that cannot be devalued by the government like the dollar.
Redhawk

[allagash]

some nice, (sell off), action these past couple days....hope it continues....

-Mike

[allagash]

a little name change here:

http://blogs.wsj.com/marketbeat/2011/03/23/q-why-did-qqqq-drop-a-q-to-become-qqq/

-Mike

[allagash]

nice rebound underway:

http://stockcharts.com/h-sc/ui?s=SPY&p=D&b=5&g=0&id=p91208188947

-Mike
http://dlund.20m.com/images_newest/Res080107a.jpg

[alohatony]

nice rebound underway:

http://stockcharts.com/h-sc/ui?s=SPY&p=D&b=5&g=0&id=p91208188947

-Mike
http://dlund.20m.com/images_newest/Res080107a.jpg

I wouldn't embrace the "recovery" bandwagon just yet. Stimulus spending is just running out now and there are still record-shattering public debts behind it all. Congress is going to raise the national debt ceiling - again - over the coming weeks to avoid (or postpone) a Federal Bankruptcy. We ain't out of the woods yet...

[allagash]

embrace?

far from it....

just cold calculation.

-Mike