Tuesday, December 12, 2006

U-Turn

From the Associated Press:

Instead of using their year-end gains to invest in real estate, most online investors want to put their money back into their portfolios, a recent survey from Scottrade shows.

Sixty-three percent of investors plan to put their gains back into an online brokerage account, while only 14 percent plan to buy a house. This marks a departure from recent years when investors had shifted their money to the booming real estate market, according to Scottrade.

9 comments:

Anonymous said...

Any of you folks got any reasons the market is holding up so well? I'v been expecting a sell off but we just keep plugging along.It has been really boring the last couple weeks.

Anonymous said...

Everyone is shifting their money back into stocks from real estate. Follow the money.

Sam Tehrani said...

Dear sacremento landing webmaster:

Are you reading my mind?! This is exactly what I did except I go through Charles Schwab. My portfolio was 40% invested in real estate and I've completely emptied it all to bonds and stock.

No use investing in a bubble that's gonna pop! I love this site, it puts the smack down on Sac homes!

AnalysisGuy said...

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Gwynster said...

I moved everything out of any RE type industries and into bond and treasury markets about a year ago.

patient renter said...

Reading Mish's blog, there have been lots of comments recently from people who have pulled their money out of the stock market altogether in anticipation of a recession. I'm more with this crowd.

paranoid renter said...

patient renter,

There are too many factors to be able to time the market. Real-estate is a bit easier since the cycles are longer. Stock markets can go either way at pretty short notice.

I tend to agree with the opinion that the credit bubble points to a imminent recession, but I still have money going into stocks in my retirement plan.

I thought the market was overvalued when the the Dow was ~10500. As a result, outside of retirement, I've tried to steer completely clear of stocks -- which of course has turned out to be a bad thing in hindsight!!

Anonymous said...

I believe there is some movement from real-estate into stocks/bonds, however the institutional investors who control the market have never been huge investors in residential real estate. In fact, REITs that hold commercial real estate have been on a tear that makes the larger equity market look like a poor investment.

RayW said...

It's always about perception. People perceived they could make money playing monopoly with their houses and now they are going back to the stock market....maybe the next big thing will avacodos....