I recently sold a mutual fund I've had for about 10 years, although it has increased significantly over the course of a decade I was most dissapointed with it's performance in the past 3 months. Unfortunately I need to have the cash on hand for a new home purchase and I can't ride out the low periods.
On another note, I spoke with an associate of mine regarding interest rates. He predicted ARMS to be as low as 3.25% in the coming months. Any thoughts on that?
Best,
Kyle
Mutual funds and investments come in all kinds of colors and flavors. You must keep in mind whether investing in the stock market and/or real estate that you need to be speaking with a qualified professional. Why would a buyer/seller want to speak with you as opposed to their neighbor who owns a home and a mortgage? Make sure that everyone knows that you are the professional.
In regards to your investments, you need to align your time frame with the proper utility. For instance, if you are planning for retirement you don't put money into a certificate of deposit. Vice-versa. Any great investor will tell you that the underlying guidance for investments is the arbitrage factor. You should really eliminate from your mindset where rates will be in the future.
Be ever mindful that rates are relative. When loan rates are low so are return rates on investments. When loan rates were high (double digits) so was the rate of return on investments.
I appreciate the input regarding investment, regarding your comment on, "Why would a buyer/seller want to speak with you as opposed to their neighbor who owns a home and a mortgage? Make sure that everyone knows that you are the professional." I would advise anyone to never listen to their neighbor about the housing market unless their neighbor is a real estate professional. I've heard time and time again from many different clients, neighbors and friends about the condition of the real estate market. A lot of what I hear is just word or mouth from a relative or friend who lives somewhere else in the country who gives them a general opinion based on their thoughts (Founded or unfounded) about their own market. The fact of the matter is, although the national trends do have an influence on our market, it really is not any indication of where our market it going. Nationally towns that have large colleges and universities in them tend to be much more stable than other places in the US and overall our market is fairly strong especially for this time of year. We see many new homes coming on the market and homes are still selling, even land which is notorious for moving much slower than homes has been moving steadily.
Best,
Kyle
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