Mon
Market woes continue, consolation possible
Posted by Marlow Harris under Real Estate
1 Comment
Wall Street was shaken to its foundations in the most harrowing and volatile week in modern history, as a widening crisis of confidence led to the demise of the 158-year-old Lehman Brothers, a government takeover of American International Group , a shotgun marriage of Merrill Lynch with Bank of America , and the merging of Goldman Sachs Group Inc. and Morgan Stanley into banks.
But there’s light at the end of the tunnel. Watch closely how Wall Street insiders console each other.
This is at once the worst and best time to invest in US real estate. True, it is hard to get any financing and nobody has any idea where the market is heading next. In the long run, whatever happens short term, current prices will surely prove to be a nice bargain. With so many investors sitting with their cash on the sideline and a major recession looming, I bet it will not take long before they realize that real assets are more attractive than anything else including stocks, corporate bonds, ridiculously low yield treasuries, mortgage-backed securities, credit derivatives etc… And if you are lucky enough to be able to buy for cash, now is the time… except in manhattan, where it is still a little early because the super rich are still confident they can wither the storm and are only starting to make a pause. Just wait…
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