Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM Tuesday, November 29, 2005:
I caught a cold. It's miserable. Is it a warning? It's not easy
out there in investment-land. I'm playing very conservative. Cash is king. Short-term
is where it's at.
bubble is bursting: Prices of New York apartments are tumbling, my
friends in the business tell me. It's not a rout (defined as a state of wild
confusion or disorderly retreat). But prices are definitely falling.
Apartments are taking much longer to sell. Nationally, things are tapering off.
The National Association of Realtors reported Monday that sales of existing
homes fell 2.7% in October. The decline might have been even steeper
were it not for residents displaced by Hurricanes Katrina and Rita relocating
to nearby cities.
If you wanted to be truly pessimistic, you could argue that housing bursting
might have dire consequences for the economy next year. Gretchen Morgenson of
The New York Times asked this question on Sunday:
DOES a financial
train wreck lie dead ahead for American consumers and investors? Paul Kasriel,
chief economist at the Northern Trust Company in Chicago fears as much. He
reckons that even a mild recession next year could spiral into something ugly,
given the combination of rising interest rates, off-the-charts consumer debt
and a cooling housing market. "We have a very accident-prone economy,"
Mr. Kasriel said. "We have the most highly leveraged economy in the postwar
period, and the Fed is increasing rates. In the past 30 years or so, whenever
the Fed has raised interest rates, we've quite frequently had financial accidents."
her argument up with four charts and their caption: On
Shaky Ground: In the last five years, consumers' spending
fueled by home-equity cash-outs, has exceeded their earnings. But greater leverage
exposes them to risks if real estate values fall. Banks, meanwhile, have increased
their mortgage holdings, making them more susceptible to a declining real estate
market as well.
* Include regular
mortgages, mortgaged-backed securities and the liabilities issued by government
agencies like Fannie Mae and Freddie Mac.
Only in California:
Reader Fred Bonness reports a listing in California:
One bedroom, one
bath, 144 sq. ft. Bass Lake, California. Asking price: $115,000. Click
here. I suspect this is someone's idea of a joke.
can you be so stupid, and so greedy: From The
Wall Street Journal:
Cunningham, who was an ace pilot in the Vietnam War before serving eight terms
in the House of Representatives, admitted (before a federal judge in San Diego)
that he had accepted $2.4 million in bribes from several conspirators
in a variety of forms, including cash, rugs, antiques, furniture, yacht-club
fees and vacations. The case centered on Mr. Cunningham's $1,675,000
sale of his Del Mar, Calif., home to defense contractor Mitchell Wade, who
then quickly sold the home at a $700,000 loss in the midst of a San
Diego housing-market boom. Prosecutors said that Mr. Cunningham received an
inflated price for his home in exchange for helping Mr. Wade's company, MZM
Inc., secure Pentagon contracts. Late Monday morning, Mr. Cunningham, 63 years
old, resigned his seat in Congress. "I can't undo what I have done but
I can atone," he said at a news conference.
There is no truth
to the rumor that Mr. Cunningham will now be writing a
web site called "In Search of the Perfect Bribe."
Cyber Monday boomed: Americans spent 22%
more online Friday. Web traffic was up 29%. Individual retailers report
strong sales for yesterday, Cyber Monday. Electronics is where Christmas will
be this year. I continue to like Microsoft, Dell, Intel, Texas Instruments
and Best Buy.
to make PDFs (part 2):
From two readers:
long used PDFactory and FinePrint when printing to paper or creating PDF documents.
Saves a lot of paper and more importantly it reduces the amount of ink/toner
used. FinePrint does a great job of allowing you to control the way you print
and the amount of paper you use. You can print two up, four up, booklet format,
etc. pdfFactory allows you to create PDF documents from anything that can
print to your printer. You can see both at www.fineprint.com.
You can try them out free.
Carl A. Wright
Hi Harry, PDFCreator
is a free PDF printer driver: Click
here. Also, I prefer FoxIt PDF reader to Adobe, a much smaller and
faster alternative: Click
here. Enjoy reading your column,
A man and woman were married for many years, even though they hated
each other. When they had a confrontation, screaming and yelling could be heard
deep into the night The woman would shout, "When I die, I will dig my way
up and out of the grave and come back and haunt you for the rest of your life!"
her. They believed she practiced black magic, because of the many strange occurrences
that took place in their neighborhood.
The woman liked
the fact that she was feared. To everyone's relief, she died of a heart attack
when she was 68. Her husband had a closed casket at the wake. After the burial,
he went straight to the local bar and began to party, as if there was no tomorrow.
concerned for his safety, asked, "Aren't you afraid that she may indeed
be able to dig her way up and out of the grave and come back to haunt you for
the rest of your life?"
The man put down
his drink and said, "Let her dig. I had her buried upside down......."
Birthday: Happy birthday, Todd. Older, but
wiser. Yes. Older, but richer. No.
+ Dumb reasons we hold losing stocks. Click
+ How my private equity fund is doing. Click
+ Blackstone private equity funds. Click
+ Manhattan Pharmaceuticals: Click
+ NovaDel Biosciences appeals. Click
+ Hana Biosciences appeals. Click
+ All turned on by biotech. Click
+ Steve Jobs Commencement Address. The text is available:
Click here. The full audio is available. Click
+ The March of the Penguins, an exquisite movie. Click
+ When to sell stocks. Click
This column is about my personal search for the perfect
investment. I don't give investment advice. For that you have to be registered
with regulatory authorities, which I am not. I am a reporter and an investor.
I make my daily column -- Monday through Friday -- freely available for three
reasons: Writing is good for sorting things out in my brain. Second, the column
is research for a book I'm writing called "In Search of the Perfect
Investment." Third, I encourage my readers to send me their ideas,
concerns and experiences. That way we can all learn together. My email address
is . You can't
click on my email address. You have to re-type it . This protects me from software
scanning the Internet for email addresses to spam. I have no role in choosing
the Google ads. Thus I cannot endorse any, though some look mighty interesting.
If you click on a link, Google may send me money. That money will help pay Claire's
law school tuition. Read more about Google AdSense, click
here and here.