Tuesday, September 4, 2007

It is unofficially fall. Where do we go from here?

Back to work time. Where does the market go? Beats me; that is why I am the lawyer.

But seriously, David Bodamer was once again kind enough to find a well-written post from Net Gain Real Estate about real estate investing in a marker correction, including a good basic three-point summary for analyzing property before getting into serious due diligence: cash flow, tenant quality and net growth. That is a great start for any investor in any property.

I also this holiday weekend got around to catching up on the zillion periodicals to which I subscribe and came across a characteristically witty piece in Fortune from Ben Stein. His take? "Stupid" investors who just buy the broad markets make money in the long run, while "smart" investors lose trying by jumping in and out of the market. My favorite line was what I assume is a swipe at Jim Cramer, one of my favorite writers: "[The smart investor] even has bald people on TV telling him he's right to worry." (I nonetheless love Cramer and think Confessions of a Street Addict is nothing short or sheer genius imo.)

Let's see who is right and how it will impact the CRE market.


Jeff Brown said...

David - I don't know this for sure, but it's my educated guess, Mr. Cramer could buy and sell Mr. Stein before his mid-morning coffee break - and not know it unless his accounting department told him. :)

Furthermore, Mr. Cramer wouldn't miss the amount of money it took to do it.

David Stejkowski said...

Oh, Cramer is a genius, no doubt about it. And I would not be surprised if you were right. But Stein makes an interesting point about the effect on the market. The problem he perhaps ignores is the perception of a crisis, be it right or wrong. And maybe there is a little sour grapes there because Cramer is so successful. Heck, watching him is almost a habit; you can't say that about Stein. :)