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Kiyosaki has gone "short" on RE and is telling everyone to get out because for his own personal gain.
"Please crash, so I can buy some more," he says with a hardy laugh. "I want it to bust anyway. There's more opportunities in a down market."
He's telling everyone to get in on oil and gold cause he probably invested a lot in those sectors. Isn't this what brokerages do? When they upgrade a stock, they are quietly dumping it, and when they downgrade, they are buying your shares cheap
Kiyosaki is probably right about the getting out of RE but he's definitely not the first nor the only one saying that. The thing that really bugs me is him recommending buying gold and oil. OK, so he thinks gold will go up. Fair enough. But quoting him: "If you want to be smart, buy gold coins."
what the heck is that? buying gold coins is not buying gold. Please. If you are really interested in buying gold, you can considering buying gold futures or even better, the relatively new gold ETF.
The more he talks, the more he displays his ignorance of financial instruments.
I think the point is that he is selling off his non-income producing property. So many (just read this forum) are buying rentals, going in the hole on rents each month, and hoping to get quick appreciation so that they can sell. This seems to be the group at risk if there is a bubble.
gr8mom said:I think the point is that he is selling off his non-income producing property. So many (just read this forum) are buying rentals, going in the hole on rents each month, and hoping to get quick appreciation so that they can sell. This seems to be the group at risk if there is a bubble.yup
This was written by someone who actually knows the real estate industry, unlike Kiyosaki who spouts a lot of talk but doesn't actually back it up with any real analysis.
I would take anything that Kiyosaki says with a grain of salt.
Justsomebody said:bestcreation said:...buying gold coins is not buying gold.
To quote you back to yourself, "Please."
Your post communicates that you have a clear preference for electronic liquidity. The preferences of others may differ significantly from yours.
JS
I do not have "a clear preference for electronic liquidity". My preference is actually using financial instruments that are able to retain the value of your investments. Why buy gold coins and paying (higher)transaction costs and worrying about where to keep your coins when all you want is exposure to gold? In other words, do you want to play flip the (gold)coins with your nieces and nephews or do you want to invest in gold?
If I may venture a guess, your post communicates a clear preference for Kiyosaki's flawed reasoning.
bestcreation said: Why buy gold coins and paying (higher)transaction costs and worrying about where to keep your coins when all you want is exposure to gold?. BC many people want more than just exposure to gold....
some keep gold in case of disaster. physical possession of coins is a benefit to them. A stock on a computer screen isnt tangible, and wont do you squat if you need to barter with it.
Yesterday's real estate data shows the US real estate market is red red hot with the median house price gaining 15% year on year.....biggest gain in history. Greenspan is starting to sweat as his ultra low interest rate policy to keep the US consumer on a morphine drip and the manipulation of long term US rates by Japan and China have created massive unintended consequences (namely unprecedented US indebtedness).
Now Greenspan has NEVER used interest rates to squash an asset bubble so it is going to be very interesting to see how the Fed deals with this. Expect alot of jawboning from Fed officials warning against real estate speculation in an environment of rising short term rates.....problem for them is long term rates are staying low to fuel the red hot fire.
Gold is an excellent investment however I would not be trying to top pick this real estate market and short it to go long gold. Signs of a top getting close are that the latest entrants to the re market are people who would not even come close to qualifying for a loan in the past but with extremely easy borrowing requirements are being allowed to borrow massively beyond their means. Koreans are providing way too much liquidity to this market and I don't see how Greenspan can control this. Also rents are not keeping up at all with the rising housing prices and many investors with zero down loans are trying to rent at close to their loan repayments but are about 40% away from market.
Personally feel it is premature to call a top as the bubble has plenty of room to balloon unless Greenspan changes Fed policy to address asset bubbles (highly doubtful). Gold still an excellent investment for any well diversified portfolio as players continue to bail from the euro and the dollar into gold.
didYOUsearch said:bestcreation said: Why buy gold coins and paying (higher)transaction costs and worrying about where to keep your coins when all you want is exposure to gold?. BC many people want more than just exposure to gold....
some keep gold in case of disaster. physical possession of coins is a benefit to them. A stock on a computer screen isnt tangible, and wont do you squat if you need to barter with it.
Many Jews escaped with their families from Nazi Germany by bribing and bartering with gold coins. Some conservative investors keep gold coins hidden and available in the event of civil unrest and chaos. No one is sounding an alarm, but remember, Sarajevo and Kosovo were once civilized cities. Things happen quickly and unexpectantly. Gold coins make sense for unforeseen circumstances.
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