Tuesday, January 26, 2010

Don't wait for good news if you want to make great investments

We humans have a natural tendency to predict the continuation of whatever trend appears presently. When times are great, we are euphoric. We all look like geniuses with our investment skills as the rising tide of the markets raises all boats. And although we might pay lip service to knowing it won't last forever, for the most part, our actions would seem to indicate otherwise. And, of course it works in reverse when times are tough. We hoard our precious capital, convinced it is only going to get worse, and it is these folks' realizing they have missed the bottom that typically drive the sharpest upswings in the markets later on, as they all try to pile in at the same time. In other words, people are greedy when others are greedy, and fearful when others are fearful.

Arguably one of the best investors on the planet, Warren Buffett, has paraphrased his investment philosophy as follows: "Be fearful when others are greedy, and greedy when others are fearful." His track record speaks for itself. We humans, as a group, do tend to fix things over time. Markets cycle back. They normalize.

Right now in Austin, Texas, we have just closed out a year that saw a 108 percent leap in commercial property foreclosures over 2008. And the forecasts are anything but rosy going forward. With $500 billion in Austin commercial mortgages coming due for refinancing in 2010 and over $800 billion in 2011, it is hard to imagine how now could be the right time to put that precious hoarded capital back to work; however, if you can see it coming, other investors can too, and the market has likely built much of it into current valuations. In other words, by the time the market turns, the news is typically still getting worse. If you wait for the news to be bright and cheerful, you've almost certainly missed the strike point. Markets are, by nature, a forward-looking mechanism. They peak while the news is still great and they bottom out while the news appears dismal.

We have a very attractive general investment proposition here in Austin that will likely provide an underlying bid to our market that other places just can't claim. People really want to come here to live, because it's such a great place for it. And that attracts capital, all else being equal.

Investing isn't easy. If it is, start looking for the sucker at the table. If you can't find him, get a mirror. But if you are an investor, then it’s time to load the gun and go hunting. Great deals are around, and you don't want to be trying to buy them when everyone else is sprinting headlong for the entrance.

This article was provided by Janae Oliver of Regent Property Group providing Austin real estate services and providing information about Austin luxury homes for sale to those people searching Austin neighborhoods for purchasing or selling a home.

Thursday, January 21, 2010

Businesses That Went Bankrupt

During the Great Recession, thousands of people were forced into home foreclosure and bankruptcy, leaving their broken mortgages behind. But the little guys weren’t the only ones forced to hire bankruptcy attorneys, as many large and well- known companies had to file for bankruptcy over the last year or two.

Steak Houses

One of the worst markets in 2009, people just aren’t eating out at steak houses at the moment. Several companies in this part of the restaurant market have declared bankruptcy, including ARG Enterprises (Black Angus Steakhouse), Buffet’s Holdings (Tahoe Joe’s Famous Steakhouse), and Metromedia Restaurant Group (Benigan’s).

Vicorp Restaurants

Owner of both Baker’s Square and Village Inn, Vicorp proves that the shortage of willing diners doesn’t just affect the high end portion of the industry, but cuts across the spectrum. After filing Chapter 11 in 2008, the chain was sold to an investment company which plans to continue operation of over 250 restaurants, in an attempt to prove that the industry isn’t really as bad as it seems on the surface.

Mrs. Field’s Famous Brands

Including (of course) the delicious cookie line, Mrs. Fields filed for Chapter 11 bankruptcy in August of 2008, and emerged from it ready to continue opening new stores in 2009.

Flying J

That bastion of travel centers suffered considerably when the number of people on the road dropped considerably. With less consumer purchases made, less truckers were on the road, and with less vacations fewer travelers drove through. Last but not least, so many less people are relocating from one city to another that even that market is fading quickly, putting Flying J in a tight spot. After filing in December 2008, they laid off employees, closed restaurants, replaced the CEO, merged with their primary competitor, and even sold off refineries and oil pipelines.

Friday, January 15, 2010

Necessity of Travel Insurance

It's been long that I have not covered any topic on insurance. So I thought of sharing few tips on necessity of travel insurance. In general we all like to travel and explore new places. You can also see that nowadays tourism industry is growing very fast and all over the world.

Travel insurance is mainly beneficial when you are traveling abroad. As we all know, there are a number of undesirable circumstances that could arise prior or during the trip. Even if you have regular insurance covered for you, check whether it is applicable in foreign countries, since most of them do not provide such cover.

There are a number of criteria that you have to keep in mind so that you choose the appropriate travel insurance for the trip. Here is a very good step by step guidance on how to choose one.

Friday, January 8, 2010

Starting New Year with new Home:

First of all let me wish you all a very happy new year!! May all your wishes come true and hope you have a successful year ahead filled with prosperity and happiness.

With the ushering of the New Year, many of us are thinking of moving home and I am sure its probability is not very less. There may be different reasons behind it - some may just need a change, some out of necessity or some may have got great offer or opportunity to purchase their first home.

If you are one of them, I must say this is the right time. The housing market is showing shaky recovery from the recession and is still low. Moreover, mortgage rates have declined this week after some gains earlier. Even the government has been kind enough to help people by providing a certain type of grant. This grant will help the first time buyers to pay for a proportion up to and including 30% of the property price. The idea behind it is to allow you to get a smaller mortgage and the loan amount free of interest for five years. Thus giving you an option of save money to pay it back. Just keep in mind that there are certain conditions for these loans to be accepted.

Let us forget about the bad patch that the first time home buyers had to face last year. Take full advantage of the government scheme and fulfill your dream of a new house. Hopefully more of us will have the option of getting new homes sussex in 2010.