Fourth Quarter Saw Biggest GDP Decline in 26 Years
NEW YORK (CNNMoney.com) — The U.S. economy suffered its biggest slowdown in 26 years in the last three months of 2008, according to the government’s first reading about the fourth quarter released Friday. Gross domestic product, the broadest measure of the nation’s economic activity, fell at an annual rate of 3.8% in the fourth quarter,…
I don’t know, dave and lechacal. I’m on the fence about this one. Name some cheap stocks. Even if $50 is relatively cheap, there’s still potential absolute downside to zero. Yeah, you can win, but it just seems riskier to bet on “high” priced “cheap” stocks, especially if you’re an ameteur like myself. (As if you guys are insiders).
***Bid half off peak comps***
-Unemployment: 12 percent, rising to 14 percent later
-Stock market: Stays down for three years
-Brownstones: Down 20 percent in “prime areas,” 40 percent in Stuyvesant Heights (from 2006)
-Condos: Down 40 percent (maybe less in Williamsburg)
-Bushwick: Back to 2006 levels by 2013, before the middling parts of Brooklyn.
-Time of US default: Just when things start looking up again — 2013?
What I plan to do: Keep my 401K in balanced index funds as always, use the proceeds of my Queens coop sale to buy a really awesome house on the Bed-Stuy Bushwick border that will lose 50 percent of its value (since 2006) and not come back for 15 years, lost opportunity cost of not buying in Bushwick on L line: about 40 percent. Don’t listen to the experts. They have been wrong on everything.
“WOW, BHO. Is your criteria that a stock is cheap that it sells for $5-10 per share????? Now I know you’ve really got no clue.”
I know, right? Fucking amateur. Like cheap is absolute. (Brownstoner – Please remove the “$5 to $10” part from my comment.)
***Bid half off peak comps***
Even if the price of Browstones in Brooklyn don’t take a nosedive, the overall economy has tapped some of the owner’s wealth in one way or another: loss of 401K equity, job layoffs, higher taxes to come, friends and relatives that need a helping hand, and the list goes on. One thing you can count on is gov’t won’t get smaller, but industry will.
Ahhh… I was actually going for Retail Korean Investor of the Day, but I’ll take what I can get.
Snarky Comment Of The day.
Sorry, I’ve lost track of acronyms – SOTD?
I hope that was an attempt at the SOTD award, lechacal. You sound like a retail investor in Korea.
Dave, you are so dumb. A stock that costs $1,000 is really overpriced and a $1 stock is really cheap. You obviously don’t know anything about the stock market.