Feb 07

Their is a quote that says “nothing is new, everything that happens today has happened before.” This is true in stock market and even in housing market.

Robert J. Shiller a professor of economics and finance at Yale and co-founder and chief economist of MacroMarkets LLC has posted an article in NYtimes detailing the history of real estate bubbles across USA.

The first real estate bubble happened in 1830s and burst in 1837

The second real estate bubble happened in 1850s and burst in 1857

The third real estate bubble happened in 1970s and burst in the early 1980s

The fourth has been the recent bubble that started in 1990s and burst in 2007

It is clear real estate bubbles have been few and far between. To read the full article visit New York Times Real Estate.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , , , , ,

Jun 15

Burton Malkiel is the author of the classic investing book, A Random walk down wallstreet, his latest book is Elements of investing.

The following is an index of some of Burton Malkiel Investing ideas and investing tips.

  1. Burton Malkiel Number one Investing Idea is simple – It all starts with saving. The earlier you do it the better.”
  2. Burton Malkiel Advise on Buying a Bigger Home – It is not worth it. Buying a bigger homes means spending more money to service the mortgage and less money left for saving and investing.
  3. Burton Malkiel Advise on managing risk – To make money you need to take some degree of risk and the way to reduce risk is by being very well diversified.The best way to go about this is to buy index funds.
  4. Buy and Hold – just like many other investment advisors who started their careers in 1970s, Burton swears by the mantra of buy and hold – over the long haul the stock market will do what it’s always done: namely be in a long-term up trend.
  5. Take advantage of tax efficient retirement funds.

written by Constantine Njeru \\ tags: , , , , , , , , , , , , , , , ,

May 19

Gold is on the rise and when a commodity is this hot it is good to revisit its past. On this chart you can see how the price of gold has trended from 1970s – 1980s – 1990s – year 2000 and upto 2010.

written by Constantine Njeru \\ tags: , , , , , , , , , ,

Theme designed by Wordpress Hosting supported by Best Web Hosting.