Something In The Wind?

Well, I guess Asia smells something in the wind. Across the board, shares rose yesterday. Could it be the rumored moves from China about propping up the markets? Whatever the reason, the US market is seems to be buying it this morning, but me thinks the US market needs something more to solidly kick back in to the upside ...

  • Real estate and gold will keep you even not make you money. You sell your house or bullion and chances are you will pay as much or more to get back in the game. I need to make $$ not break even. How do you do it, or is just plain ole luck???

The above reader presents and interesting perspective. It seems the price of real estate and gold tend to move in long cycles. To a degree, then, the reader is correct about getting "back in the game." On the other hand ...

Both real estate and gold can make you money. As you know, I am not a "gold bug" and I have my doubts about it as an investment now, but plenty of folks make money in gold. The trick is to buy low and sell high. I know, I know, that that is clich?, but clich?s are clich?s because they are true. Traders trade gold on the up and down price movements and make money. With real estate, the price swings are much, much longer, so one has to find undervalued properties, much like one does when looking for stocks, and then sell them when their true value is attained.

As to how one makes money in the market, that too is possible. Just ask the many who make money playing the market. Does luck play a role? You bet, but day in and day out, those who make money in gold, real estate, or the market do so because they work hard, do their homework, and generally treat making money as a job ...

Europe is back in the news, and maybe that is part of the rise in Asian markets. Maybe what those investors smell is a changing tide.

  • Germany cleared the last legal hurdle to ratifying the euro zone's new bailout fund on Wednesday with a cabinet declaration that addresses concerns raised by the country's Constitutional Court. Germany is the last country in the 17-member euro zone to complete ratification of the European Stability Mechanism (ESM)

Check that off the list for getting Europe back on track. The ESM is a key element to bringing confidence back to the European markets, businesses, and consumers. The next step is to get Portugal, Italy, Ireland, Greece, and Spain moving in the right direction economically. Look for economic stimulation. In the meantime, think about increasing exposure to the European and Asian markets. History tells us, the cycle always turns. Oh, and what about that US real estate market?

The median price of a new home increased a record 11.2 percent in August to $256,900 - the highest level since March 2007. Compared to August last year, the median sales price jumped 17 percent, the largest rise since December 2004.

I believe the blush is now returning to the rose. The "talk" is both the real estate market and the housing industry have turned the corner. Does this mean opportunity?

Homebuilder Lennar Corp on Monday reported a 44 percent jump in orders for new homes during the third quarter, the sixth straight quarter of growth.

Trade in the day; Invest in your life ...

Trader Ed