Invest your home equity?

[dimwit]

Yeah... I know - looks like a misplaced thread. But seriously, when titles like this are true then bubbles a' brewing.

2 funny news articles today correlate well... funny.

So Cal real estate went up a record 17% from last July to this July. As I've said before I feel crazy not selling - but I felt that way last year. So the craziness of waiting another year net me about $260 per day gain. Is that crazy! That's pretty hard to accumulate mula that fast legally doing absolutely nothing in terms of working at it. The article went on saying that as long as the regional job market is sound, the bubble has a source to sustain it indefinitely (kind of sounds like the rhetoric spread at the peak before the 1929 stock bubble).

Anyway, not caring much since I gotta live bicycle distance from work in a home (definite gotta) - I need to do a few things before I can pack up so I'll ride the wave a few more months (I hope). Then another article pops up that extra money in house equity should be taken out as it rises to a given portfolio allocation - and spread to stocks and bonds. Like a bubble needs another bubble. I guess that why they call 'em bubbles.* *

Is anybody else laughing a little at this one...

http://tinyurl.com/7z8ju

dim

[TargaDave]

So the author here didn't say anything about variable rate mortgages or bond maturiies. Just says if you have a large mortgage relative to equity increase your bond exposure.

So Joe/Jane Schmo with a "big" mortgage most likely has an adjustable rate, and according to the author should run out to buy bonds (I'm sure they'll go for 10-20 yr maturities for that extra half point), this all being done during a time where interest rates have to rise just to get back to neutral. Fuel to the fire

Ah yes, the $260/day CA orgy. Right up there with the $150+k/yr option grant love fest.

[azanon]

Is this spam? Looks like a spam email title to me.

[REWahoo]

Azanon,

After reading the post and the referenced URL, it doesn't appear to be spam even though it does have a spammy title.

REW

[charlie]

That $260/day is not real until you sell. You are just as likely to
lose $260/day in the next year, IMO.

Cheers,

Charlie

[MJ]

The conservative selling price of my house and my small pension I will receive in 8 years are part of my financial spreadsheet but my activity flags is set to off for both. I don't consider either of them part of my real assets until I actually sell the house or begin receiving my pension.
I do occasionally turn the flags on and am thrilled to see the greatly increased value of my assets.

[guitarplayer]

well the url of the link looks spammy... affiliate spam