Hi Everyone, not much in real estate news today. Here's a reposted article in the Modesto Bee. I think we may have read this one already... it look incredibly familiar. Have a great day!
Stock Tips: As real estate cools, stocks may heat up. Baby boomers look to build nest eggs. Like other investors in the first half of the decade, McMeiken had success investing in real estate. But with sales slowing and home prices flat, there's a concern that the real estate market is cooling. And with bonds experiencing worrisome trends and increased volatility, and the Dow Jones industrial average topping 11,000 this month, investors have increasingly focused on stocks. Even government bonds have been volatile, with the yield curve inverting in the last week of 2005. Normally, long-term bonds such as the 10or 30-year yield more than a two-year or shorter-term note, because the government is borrowing the principal longer. But when the curve inverted, the two-year had better returns than the 10-year and increased investors' frustrations. That leaves stocks. According to Kleintop, earnings per share for companies listed in the Standard & Poor's 500 index have risen 46 percent since 2001 and dividends per share are up 39 percent. Yet a stock's value, measured by comparing its price to potential earnings, has declined. In 2001, stocks were priced at about 22.2 times forward earnings, compared to 13.8 times forward earnings today, Kleintop said. In other words, while a given stock may have risen or fallen over the past five years, stock investors could get more for their dollar overall on Wall Street. There's evidence investors are moving back to stocks. Mutual fund companies reported strong inflows through the second half of 2005. And in the first two weeks of 2006, E-Trade Financial Corp. said it has seen a 50 percent increase in walk-in traffic at its New York financial center. Click here to read more.
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
No comments:
Post a Comment
Thank you for commenting!