G&G Associates Tax & Financial Consulting
US Housing Collapsing…the Bomb Doors are Now Open
Hotep (Peace & Blessings) G&G Readers,
Sales of existing U.S. homes have just suffered their worst single month collapse in recorded history -- down 27.2% nationwide; down even more dramatically in major regions like the Midwest. And new home sales, just out this morning, are nearly as bad!
This bombshell has been plastered all over the news. So you're probably well aware of them. But what's not so broadly understood are the primary reasons home sales are plunging: The biggest overhang of supplies of all time.
In fact, the inventory of unsold new homes is so large and the downward pressure on home prices so great that it's causing a sudden, all-out, nationwide buyers' strike.
The reasoning of most would-be home buyers is very simple:
Why invest in an asset that's sinking in value? Why buy it now
when we can get a much lower price later? If we're going to
invest money, why not put it elsewhere -- in something that's
stable and growing?
I agree. And I think the same exact logic applies to U.S. stocks.
Do you have a Home-Based Business (HBB)? If not, Why? This is your quickest, safest and most assured way to get a GUARANTEED 25-35% ror on your investment. Remember, with a HBB you get to deduct over 422 business expenses. Without a business you get about 7-10 business deductions. Look at it this way…if you are in the 30% tax bracket (25% Fed & 5% state); for every dollar you deduct 30 cents goes to you. For every dollar you do not deduct 30 cents goes to Uncle Sam.
Somehow I think you can use the money more than your Uncle.
Give me a call and I’ll show you how to start your own Business for $49 and implement this strategy and keep 30 cents on every dollar by doing so as well. This is what you call SMART planning and investing.
Most U.S. stock are bound to get hammered by the same forces that are slamming real estate.
Real estate is being pounded by the foul mood of American consumers and investors. The same fate awaits most U.S. stocks.
Real estate is being cut off at the pass by the most chronic tight credit in our lifetime. The same is going to happen to most domestic companies listed on U.S. stock exchanges!
Real estate is also being slammed by sharply rising unemployment. Ditto for most U.S. companies!
Bottom line: If you have most of your money in U.S. stocks, that money is in jeopardy.
Four (4) Urgent Steps to Take Right Now !!!
Step 1. Sell investment property. If you haven't done so already, it's still not too late to greatly reduce your exposure to real estate -- to sell second homes and investment property. But don't delay. This bombshell news is sending you the clear message that time is running out and doing so quickly.
Step 2. Refinance. Right now, thanks to massive amounts of money Washington has poured into the mortgage market, fixed-rate 30-year mortgages are not only readily available, but you can get them at the lowest rates in history.
But with the economy sinking again and with credit conditions already extremely tight elsewhere, this credit bonanza is NOT likely to last very long. So if you have a mortgage and want to stay in your home, grab the opportunity to refinance while you can.
Step 3. Get out of most U.S. stocks. I warned G&G readers about this in 2007 and those who listened survived the storm and those who didn’t lost half their portfolio and are now moving their retirement date to the right. There may be some exceptions to which Stocks to sell, but the fact is, overall, U.S. stocks are GROSSLY underperforming stocks in over a hundred other global markets.
Step 4. Invest in countries that are growing strongly -- not countries that are sinking back into a quagmire. The great news is that you don't have to settle for the meager gains and high risk implicit in U.S. stocks today.
G&G Associates has offered up many ways for you to make high income to GGIS Subscribers. Our favorite way has been through Hard Assets, but there are alternative resources for those who still don’t trust themselves to hold their own money and prefer to give it to someone else to hold it for them.
Unless you want to live on nothing, you must roll up your sleeves, do your homework, and act. I’m doing my best to help you… to share my best ideas for earning high-yields in a zero-percent world. And I'll keep doing it.
But it's up to you to act. Do your homework and get started.
As I’ve said for the past three years now…for starters…buy real money…”Gold & Silver.” As of this writing, both medals are approaching there resistance levels poised to break out to set new record levels.
With the economy preparing for that next fall, you need to stay on top of your game and manage your “OWN Finances.”
Become a GGIS lifetime subscriber now and you’ll be sure that we make sure you stay on top of your Tax and Financial Future to make sure your BUSINESS … AT HOME is protected. Remember…most people look after their bosses business, but fail to look after their own Business At home.
Take advantage of our 2010 discount offer if you are not yet a member of the GGIS paid newsletter service and you’ll be on your way to knowing how to protect your portfolio...at least what’s left of it. I’ll keep you informed on the “REAL DEAL” in our economy so you can protect your wealth. So....Sign up today!!!
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Until the next time!
Asante Sana (Thanks)
Tax & Financial Consultant, RFC
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P.S.#2 If you are looking to Travel and looking for steep discounted travel or want to learn how to deduct your travel as a business, visit www.gngassociates.net, click on the “G&G Travel” link and let your travel planning begin. Let us know where you want to go anywhere in the world and we’ll do our best to find you the best deal your money can buy and how to deduct it.
LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.