I have friends in the mortgage business with loans coming out of their ears. Anyone with a Fico score of 620 and better is qualifying for sub 6% loans, providing they monkey up to the table with 20% down. Case in point: have a gander at Toll Brothers, Inc. [[TOL]] today.
Ladies and Gentleman of the internet, do yourself a favor and buy a house.
Don’t believe me?
Take a look at the Case-Shiller Metro Housing shares up [[UMM]] :
This ETF tracks the actual value of homes in NY, Boston, Dallas, Tampa, Miami, LA, Phoenix, etc. Basically, it tracks the value of homes in big cities aka “the only place that counts.”
Now ask yourself, punk: are ya’ feelin’ lucky?
Do not misconstrue my 60% cash position for bearishness. I told you once and I will say it again: this is a LONG ONLY market. Failure to adhere to these laws of reason will result in me buying your house in foreclose.
Don’t get me wrong, with the positions that I still hold, mainly foreign stocks, I am doing quite well. CGG Veritas (ADR) [[CGV]] , ICICI Bank Limited (ADR) [[IBN]] , Mechel OAO (ADR) [[MTL]] , Ctrip.com International, Ltd. (ADR) [[CTRP]] , [[CBD]] , [[MWW]] , Sociedad Quimica y Minera (ADR) [[SQM]] , Equinix, Inc. [[EQIX]] , POSCO (ADR) [[PKX]] , Ciena Corporation [[CIEN]] , Jarden Corporation [[JAH]] and Aracruz Celulose SA (ADR) [[ARA]] all look good to me. While it’s true, many of the stocks above represent “watered down” positions, considering that I sold the lionshare of my holdings. Nevertheless, I am still participating in the rally, just not with my balls on the kitchen table while speed chopping carrots.
Bottom line: What’s your cash position?
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