Investing Archives - Authentic Properties

The Truth About Inflation and Deflation

There are warnings from the economic forces that we are in a new period of deflation and there needs to be a mindset adjustment to survive financially. The past 20 years or so have been a blessed time where jobs were plentiful, companies sales volumes increased and stock prices rose accordingly. The next several years will be plagued with quite the opposite. In these times of economic contraction what skills do consumers need to stay afloat? First let’s define inflation and deflation. Inflation is a good and bad thing. The good thing about inflation is that companies are increasing prices

The New Value

I have been reading articles lately how determining value is becoming an art form. How do you appraise an asset today when so many economic variables effect its value tomorrow? New appraisal repositories are entering the field of reference. A once easy task is becoming a sophisticated venture. When it comes to financial assets (houses, boats, cars, stocks, cash, gold) which is the best to hold when most hard assets are in decline? As the economy contracts so does the value of most hard assets. Some will reduce in value greater than others. The most expensive of financial assets would

Gains Are Found in the Highs and Lows

It is always insightful to see changes in the landscape. The feeling you get after a rain and seeing the flowers in full bloom. Being in the finance industry since 1985 I have gained much perspective (and a grey hair) in the highs and lows that come with investing. It is insightful as well to see the many changes that come when financial reforms are put into place. The feeling you get when you know the impact reforms will have on an industry will shift the balance of power. During the meteoric rise of real estate values during the years

One Step in the Right Direction

Very soon our president will sign into law the Financial Overhaul Bill of 2010. This 390,000 word document was created from the ashes of the 2008 banking collapse that brought the worlds financial systems to its knees. The bill, being released from the Senate next week, will be the heaviest piece of legislation ever created and the most sweeping reform bill since the great depression. Though the repercussions of the bill will not be felt for years, it stands to protect consumers from predatory lending, sets up systems to more heavily scrutinize financial institutions and generally make banking a more

Is the Truth Black, White or Grey?

Many mixed signals are coming from Wall Street. Every day we get peppered with positive and negative reports. On one channel we get that unemployment is increasing (bad) then another channel reports that the unemployment “trend” is improving (good). I turned on the radio and heard that mortgage rates are the lowest that they have been since 1963 (good), but home foreclosures outpace new home sales (bad). Oil giant British Petroleum capped the gushing oil well in the Gulf (good), but the Gulf Coast may take centuries to recover ecologically (bad). I guess it is how you see things that

Eliminate Mortgage Interest Tax Deduction?

I have read recently that in an effort to increase government revenue the Obama Administration is considering eliminating the mortgage interest tax deduction. I can only imagine what a quagmire government cash flows must be in from funding such colossal projects as the 2008 banking crisis, the ongoing and escalating expense of the Afghanistan war, Haiti relief efforts and now the Gulf oil spill. Trying to understand the myriad of government economics would take a brain much larger than mine. Given that there are big brains on government payrolls I am sure there must be better ideas on the plate

How European Woes Effect You

The European debt crisis is showing new signs that its credit problems are far from over. The European Nations, being one of the largest buyers of US mortgage backed securities manufactured from 2004-2007, is beginning to face the fact that their exposure to sovereign debt could haunt them for years to come. In 2009 US banks imposed “stress tests” on their ability to adequately provide sufficient liquidity during an emergency run on assets and avoid another round of government bank bailouts. European banks are now implementing similar tests. Highly publicized economic events show stress on the system such as Greece’s

The New “Downsized” Real Estate Forecast

There are new economic forecasts pouring in from Wall Street that there will be another down turn in home values in the months to come. Economists are predicting decreases between 3% to 5% nationally, but some markets could see greater declines. This should come as no surprise as new home ownership economic stimulus money dried up in April of this year, employment is sluggish at best and consumer confidence is in steep decline . It is sad but true that without government incentives people are just not that optimistic about purchasing real estate. You would think with mortgage rates at

Why We Drill Offshore and Pay $3.00 for Gas

It is a very sad moment when you suddenly realize that we are all just being led down the chute like pigs in the poke. As individuals we like to feel that our contributions helps the world somehow and what we do everyday matters. Then you read an article that sets you back a few feet and makes you question what really is the big picture? Who is really running the show? Is our world run by a planet of individuals or is it run by governments and corporations back slapping, cigar filled, back-room hand shake deals. We have all

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