Wednesday, January 23, 2013

Invest in real estate?

What John Paulson Says Is the Best Investment Now

In my opinion, John Paulson is an example of how someone can get lucky, and no matter how badly they do later, the public will remember him as some sort of visionary.  Being a homeowner, I would really like to believe what he says... then again, he made billions short-selling mortgages in 2007, and I'm sure he wasn't busy telling people what a terrible investment mortgages were then.  I am, though, somewhat comfortable with the housing market over the next couple of years.  I'm mostly worried about what's going to happen when the Fed starts raising interest rates or the federal government decides to cut the home ownership tax credits and deductions.  I still see the real estate market as being artificially inflated.  So, the decision to invest in real estate really depends on how much confidence you have in the government and the Fed.  I don't have that much confidence, but I'm also not going to sell... YET.

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