Replies to post #14568 on A.I.M. Users Bulletin Board (AIMUSERS)

[aim hier]

Hi Mark,

I'm not so sure armageddon is awaiting us. I see the future even less clearly than Warren Buffett. However, it seems to me that almost all my life I've heard economists wail about we had too much debt, how we were running budget deficits, or how our trade deficit was troublesome. When I hear people use phrases like 'record debt', I instantly wonder what they actually mean. Are they referring to absolute dollars of debt, debt per capita, or monthly debt service to total income? Further, one needs to know the distribution of that debt. If Bill Gates and Warren Buffett owe that debt, I'm not so worried. If low income folks like me, owe the debt, that's worrisome for the economy.

Generally, if we are going to see high interest rates, it will mean the economy is probably doing well. Now, years ago, when Clinton first took office, I expected high interest rates and inflation. My reasoning was that as China, India, and Latin America all developed, there would be a shortage of capital and natural resources. It didn't happen, instead interest rates plummeted. Now, perhaps, for the same reasons, we will see higher rates and inflation resume. Or maybe not. Diversify, keep some cash, and let AIM work. None of us can know the future with certainty. Will there be a terrorist attack, a world war, a major natural disaster, a political crisis?

[lifo]

Hello Mark,

I very much enjoyed reading your post.

My sense is that certain investment vehicles are not right for some people. For example, I just cannot seem to bring myself to doing anything about the idea of investing in real estate, including starter-homes, even though I know people who have done well with real estate investments.

I place a high value on liquidity; so, I prefer investing / AIM-trading stocks, and hope that the time I have invested in developing this skill-set will pay off in the long-term.

I enjoy it...so, it doesn't take any special effort. For me, real estate investing would take a lot of effort, especially that I am not known for being very 'handy' around the house.

What's a little bit amusing to me is that, while I was out shopping today, I bumped into a friend who I had helped to get some renovation business. He is very good at what he does. Today, he offered me an opportunity to work with him on a few home reno projects. I doubt that this guy has any clue about my handyman talents, or lack thereof. On the other hand, I'd like to think that there is some hope for the likes of me.

What you say about investing in starter-homes and/or high-end homes seem to make sense. Good luck in your real estate investing.

Regards,
Jack