“Steve, what are you thinking these days? What’s going on out there?”
A friend asked me that at a charity fundraiser last month. He was hosting the fundraiser at his large, beautiful home here in Florida.
My friend wasn’t asking these questions just to make conversation… He was asking because his career depends on it…
You see, my friend is in real estate. He made real money in the real estate boom as a developer and the co-founder of a bank. But he was, of course, hit hard in the real estate bust. Unlike many, he survived. And he’s been buying property lately.
[ad#Google Adsense 336×280-IA]”Look, the interest rate on my home mortgage just reset at just two-and-change this week,” I told him.
“How can you NOT make money in this environment?
Anyone with an entrepreneurial bone in their body should be able to make money in this environment.”
He breathed a sigh of relief.
He said he also thought things were getting better now.
I think he doesn’t have that much to worry about. He needs to stop watching the news…
In our Internet age, there’s plenty of information out there. The hard part is knowing what information to hang your hat on.
To me, the most important piece of recent information is that Janet Yellen is the newly appointed chairman of the U.S. Federal Reserve.
This means we will have many more years of very low interest rates. And this situation will drive asset prices – like stocks and real estate – much higher than anyone can imagine.
This has been our thesis for years – what I’ve been calling the “Bernanke Asset Bubble.” And it appears it will remain in place for a couple more years. That’s what I’m hanging my hat on.
For years now, I’ve done my best to get you to buy stocks and real estate. It was the right advice… Both stocks and real estate have absolutely soared.
The good news is, you haven’t missed it yet…
We are now in about the sixth inning of this great bull market in stocks. (Real estate is still in the earlier innings.) And I’m confident the biggest profits will happen in the final innings.
So instead of selling stocks or real estate today because they’ve gone up so much, you need to do the opposite… You need to buy more.
You see, the Federal Reserve – under Yellen – is going to keep interest rates low for longer than you can possibly imagine. (I recently wrote about why low rates could stick around for decades.)
In the coming years, as the realization of low rates sets in, I’m confident that more and more money will flow into stocks and housing.
I expect “bubbles” will return in the stock market and in the housing market… as people realize they NEED to do SOMETHING with their money.
If your retirement portfolio can’t handle the possibility of low interest rates for a long time, you need to make some changes now… before it’s too late…
We’re already past the halfway point. Stocks are not as cheap as they were. And they’re not as hated as they were.
The thing is, nothing has changed. Interest rates are still zero. And people are still scared. Yes, stocks and real estate have gone up. But I believe they still have much more room to run.
Remember, we’re now in about the sixth inning of this great bull market. And I believe the biggest gains will come in the final three… I urge you to take advantage of it.
Good investing,
Steve
Sponsored Link: Of course, I know this bull market will eventually end badly. And I’m preparing for that. In fact, I recently attended a closed-door meeting at the New York Stock Exchange… where details of the next stock market crash were revealed. You can get the full story right here.
Source: DailyWealth