Okay, so you’re probably as tired of all of the bad news in our daily headlines as I am. But remember the old adage about how it’s better to view a glass as half full rather than as half empty. It’s more important now than ever to look for opportunity.
I recently read an article by Dan Kadlec in TIME magazine, the February 15th issue, in which Dan put forth a more encouraging view of our current housing climate. He suggested that today’s market may just be the best time for you to take the plunge. He contacted the famed Peter Lynch for his current views, and through a spokesman Peter reaffirmed his philosophy that investments in stocks even in this climate are rewarding as long as your portfolio is diversified and you can hold onto it for a few years. And further, he points out that “a top reason not to buy stocks . . . is if you don’t already own a home– in which case that should be your first investment, since an owner occupied home is nearly always profitable”.
Kadlec goes on to say that if you wait another year for home prices to stop falling, you will likely encounter higher interest rates when you do buy. So his bottom line is that you will have spent another year in a place you don’t want to be, and you will have saved nothing. He encourages the reader to be amongst those enlightened contrarians who are snapping up the bargains, thinking long term and buying now. For the complete article, go to Right on Your Money.