Choices , choices: Where to put your money?

Most people see disaster. Most people see a crisis.
I see opportunities,....

The housing market has dropped significantly in both the US and the UK. European values are also dropping. Confidence is waining. What should you do? Do the maths.

While the prices are dropping rents won't fall dramatically. The banking rate has fallen to a historic low in the UK, which will be passed on to borrowers. If you can get the money for a mortgage it will be significantly lower than those that took out a mortgage back in 2007, before the crisis.

Repos are up, meaning more bargains.

Stocks, likewise, are continuing to cheapen. Some businesses will suffer in this recession. Some will suffer a lot. Others will only be mildly affected. Some might even benifit from it. The thing to realise is that the stock prices are no longer linked to the actual businesses, just on the general negativity floated around the mythical land that is the 'market'. As Benjamin Graham said, Mr Market, if it were a manic depressive, would be having a low day, even a low year. MY advice?

Don't chase after the new 'growth areas'- markets are acting cyclically and will continue to do so, instead look for outstanding long term value at the cheap prices that are available now, now, now.

I would say good luck, but as you know, dear reader, it is nothing to do with luck. Good action, for if you take action (and have faith) I have faith that you will do well.

Let me know how it goes!