If you have exposure to these areas and the sky does actually fall you give yourself the chance to offset that type of event. If you are a sky-is-falling person then maybe you need to own more of those things.
My take all along has been that issues raised by the Peter Schiffs of the world will create headwinds and slower growth not chaos. To be clear, exposure to the assets mentioned above mitigates the need to be correct.
A personal item.Yesterday Joellyn and I closed escrow on a house we bought in Hilo, HI. Owning a house in Hawaii has been 13 years in the making and this summer everything lined up just right.
We are not moving there. For now the plan is to spend about two weeks there every quarter.
It's a three bedroom, two bath new construction with a detached garage on an acre just south of Hilo--Hawaiian Paradise Park for those who know the area.
We sneaked over there for a week in July to look for a place and now it is completed. Our first trip over will be in October. We have no plans to rent it out.
Hilo is a lot like Prescott. Not that many people, a college, Home Depot, Walmart and a lot of hiking trails. Its exactly our speed.
By the way we had no problem whatsoever with the mortgage process.
18 comments:
Wow! Congratulations Roger! 13 years has seen one of the biggest bull, hardest bear markets and a reasonable recovery and Roger has made it through this in apparently wonderful shape. This shows a real life example of sticking to your plan and having it pay off. Very encouraging.
That raises a question I have been thinking about. Do the prices of ADR's reflect the currency value of country the company is located in.
For example, CCJ is a Canadian company. If the Canadian currency is stronger vs the dollar, would we expect to see that in the price of CCJ or am I missing something here?
Rick Caird
BillB thnak you.
Rick, it does matter. the easiest way to see this is to compare the us traded ADR to the shares traded locally in the home country. This can be done on yahoo finance for many countries.
When the dollar is strong the ADR lags. When the dollar is weak the ADR leads.
Congrats on the new place Roger. I'm in the hunt right now for a scenic homesite - I plan to build in 3-5 years. Wish me luck.
Roger,
Just wondering what the approximate square footage of that nice looking adobe in Hawaii is and about how much it set you back.
Thanks, Joe W.
Nice to (finally) read about real estate in the blog.
Congrats on a wise business decision, even though you purchased the property for personal enjoyment.
Look at a few more properties to purchase now, during the best real estate market for investors in years. The closer to a Wal-Mart, the better!
How about posting the floorplan?
Roger,
Congrats on the new house! I never wanted to own two houses long distance which is why I sold my house back East before moving here....but that's just my nature. Hawaii is a beautiful location. A lot greener than Prescott. We're actually thinking of a possible move back East to Asheville, NC since my wife has endured 7 yrs of trying to garden in Granite here and the city keeps doubling our water rates.
By the way, the portfolio management business must be doing well these days....
Congrats again....
Congrats Roger!
Have friends in Hilo, love the city.
Best breakfast in town is at Little Bear.
Inconceivable!
I knew those mortgage broker crooks could dupe the average consumer into a mortgage but not a superstar financial blogger.
Don't you know that housing is a bubble? Home buyers are idiots sucked in by crooks at the bank and at the FED. Housing will lead us to the end of days. Why play into their evil hands?
You must be part of the conspiracy.
Don't taze me bro.
Roger, not to rain on your parade, but did you watch Jay Leno last night?
In his "Headlines" segment he showed a real estate ad that read in part "...large wood deck, view of Walmart" - the usual comments followed.
OG
Congratulations Roger!
Does anyone have a chart of Gold and how it performs during times of recession? If so can you please share it with me.
Thanks
Jane Bryant Quinn was cnbc...heck, I was eating lunch and just there it was. She said what has made sense to me but seems to conflict with consenus about re balancing. Consensus says rebal once a yr is fine; she says whenever 5%or more "out of whack". Strikes me as the only way to buy low, otherwise people end up selling low,like their stocks out of despair,and putting them into bonds or whatever.
Any thoughts here on the process of rebalancing. One of these days I AM going to have a passive port.
Roger....your picture and announcement is an invite, just between us, right?
my take on rebalncing is simple. When you need to rebalance do it. The calendar should have no bearing. When a weighting needs to be changed, change it be it tactical or just to bring things back to target. If you just rebalnce to your target, you should need to do it that often.
On rebalancing one should consider tax implications. If it's in an IRA, especially a Roth IRA, it's O.K. to rebalance when ever you want to.
But if it's in a taxable account you should not rebalance unless you are always sure that the holding has a long term capital gains time-frame.
Roger - Nice house! I'm guessing the asking price was $299,900 for 3 bedrooms and 2 baths with a two car garage? I'm jealous!
Take along some ear plugs to Puna. The Kokee frogs are pretty loud and growing louder.
Congratulations Roger!!!
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