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MONEY. - Portrait of a Young Man as The Artist — LiveJournal
abmann
abmann
MONEY.
Well, it's good to hear that Suze Orman agrees with my own assessment of financial priorities. [Consumerist]
I started doing this about two months ago and have dramatically increased savings.

Now.. I'm starting to wrestle with buying some super cheap stocks or holding cash for a possible house purchase.
Leaning towards the latter currently.

Also, in case you hadn't heard, Iceland isn't really a country anymore. It's a hedge fund. [vanity Fair] 850% debt to GDP ratio Oops? [Marketplace Money/NPR]

Current Mood: bored bored
Current Music: - NPR: 03-21-2009 Wait Wait... Don't Tell Me!

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Comments
nathan_lounge From: nathan_lounge Date: April 6th, 2009 07:08 pm (UTC) (Link)
Bull market!

Get to it son.
abmann From: abmann Date: April 6th, 2009 07:11 pm (UTC) (Link)
Maybe? Buying stocks for less than a year is a terrible idea. There's a small chance I can gather 10% down on a house and borrow the rest from my Dad or through a home equity loan.

It is so nuts that you can put X money down and immediately pull that money out and apply it right back to the house from which you just pulled it. It's magic money.
nathan_lounge From: nathan_lounge Date: April 6th, 2009 07:41 pm (UTC) (Link)
What? You're functioning under "old" wisdom. Now is definitely the time to grab up the stupid low price for companies that are continuing to post profits (see IBM) and/or have been and will continue to be market-stable items (see GE).

Flipping that money in less than a year isn't a terrible idea right now assuming you're of the belief that the recession will be over in the next year. Though, even that isn't necessary if you want to play closely enough to shuffle money week to week. That, also, flies in the face of conventional investment wisdom, but it's easier to do now and win than it has ever been in the past (see the health care industry).

Edited at 2009-04-06 07:41 pm (UTC)
abmann From: abmann Date: April 6th, 2009 07:51 pm (UTC) (Link)
On top of the fees to trade quickly with my brokerage firm, I'd have to pay taxes on the gains. I don't know if the credits for mortgage interest and the $8k credit for the year will offset that enough, assuming I earn enough, to make that worth it.
nathan_lounge From: nathan_lounge Date: April 6th, 2009 07:57 pm (UTC) (Link)
Whoa whoa whoa....what kind of fees are you paying? Assuming you're buying more than a few shares of something, you shouldn't be losing on the deal especially if you see double digits on the percentage gain. I mean, I'm not talking about speculating in junk bonds...though, on that note, have you thought about speculating in junk bonds? Now that people are kind of negative on S+P and the other rating agencies, folks are taking a second look at junk. This is especially true since Hope said every green idea is back on the table.
nathan_lounge From: nathan_lounge Date: April 6th, 2009 07:42 pm (UTC) (Link)
I also support you becoming a slum lord just so you know.
rhino777 From: rhino777 Date: April 6th, 2009 07:43 pm (UTC) (Link)
$8k gubbment refund if you close on a house by this November...just about pays for the down payment if you're buying in the $200k area.
abmann From: abmann Date: April 6th, 2009 07:50 pm (UTC) (Link)
Yeah, another reason we're more seriously considering jumping in the boat.
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