Posts Tagged ‘Residential Housing’
April 17th, 2009 | 
Author: The Primary purpose of this post is to demonstrate what kind of research supports the asset allocation decisions on the Market Decision Dashboard.
Doesn’t Real Estate ALWAYS goes up in price.
Wrong! During most of our lifetimes that has appeared to be true because of the constant debasement of the dollar by the Federal Reserve with the approval of congress (primarily responsible), the senate, the president and the “sleeping on the job” supreme court. But the chart below tells the real story in constant dollars.
The following chart is a constant dollar price chart published by Robert Shiller. The average constant dollar price from 1946 to 1998 was 111. The index started at 100 in 1890 and after the recent bubble blow off has dropped back down to 145. But it is still headed down. Dr. Shiller has indicated that Real Estate still has a lot more downside potential – risk.
That is why Real Estate still has a Red Light on the Asset Allocation Model. There is a time and a season for every investment. I will let my clients know when it is safe to get back in to the Real Estate water. 
PS: The Shiller Constant Dollar Residential Home stats and the Case-Shiller Housing indexes are only part of what is monitored to maintain an accurate Map of Real Estate. Every campaign requires an accurate map of the battlefield. This is one of the key pieces to success in battle according to Sun Tzu in the Art of War.
If you want a call when Real Estate gets the Green Light, email me:
Michael@fibonaccifinancial.com
PPS: Yes, I know Real Estate is a “Local Phenomenon”. Local market conditions are discussed with clients
PPPS: If you found this valuable or interesting PLEASE let me know !
Michael@FibonacciFinancial.com
Posted in Financial War Room | 
Tags: Financial Planning, Housing Bubble, Investments, Real Estate, Residential Housing | 
No Comments »
- The Silver Phoenix Rises From the Ashes of the American Revolution May 13, 2009Its 1773 and you are invited to attend a secret meeting of the Sons of Liberty at the Green Dragon Tavern to plan a Tea Party. While there, you will learn what a dollar really is. What kind of money was in the pockets of colonists and patriots to pay for their grog as they quietly discussed revolution? What did the founding fathers mean when they used the w […]
- The Silver Phoenix is Rising Again April 17, 2009Is silver money? No, but it is a ISO certified currency under ISO 4217. Silver has historically been used as money more than any other item. And now the Silver Phoenix is starting to rise again. Silver has been the little guys way to accumulate and protect wealth through out history. […]
- The History of Capitalism July 30, 2010The truth is that capitalism has poured a horn of plenty upon the masses of wage earners, who frequently did all they could to sabotage the adoption of those innovations that render their life more agreeable. […]Ludwig von Mises
- Know the New Deal Cold July 30, 2010It's essential for those who believe in a free economy and a free society to know the history of the Great Depression and the New Deal, to know it cold, and to know it better than anyone. […]Thomas E. Woods, Jr.
- Not Exactly Sweet Reason July 30, 2010One of the United States' most blatant examples of protectionism — so blatant that it is used as an illustration of the idea in some economics textbooks — is its sugar policy. […]Gary Galles
- Samuel Edward Konkin III July 29, 2010Sam Konkin opened his publications to every libertarian point of view. At the top of his masthead, in every issue, he proudly printed the statement, "Everyone appearing in this publication disagrees!" […]Jeff Riggenbach