Posts tagged “housing market

The Latest Pessimism About Housing

The Prism Daily: Tue, Oct 09, 2012
Your daily financial news-tritional supplement. From David Taylor and Gordon Philips, Directors with Prism Solutions, LLC | | ‘Better Investing Through Science’

Precis: Existing Homes Inventory Same As 2004

Housing: Plenty of Reasons to Be Pessimistic
“… data from the National Association of Realtors (NAR) shows that inventories of existing homes are back to where they were eight years ago… Nowadays, a much greater share of transactions are in the ‘distressed’ category than before the bubble burst…. more than 20 percent of sales are foreclosures and short sales.”

Dionne Warwick sang, “A house is not a home”. But it’s also not an investment as millions of distressed, upside-down and foreclosed owners have discovered.

At Prism Solutions we suggest that the primary function of a house is survival, of shelter against the storm, of avoiding having to live in a tent city or worse: outdoors and homeless.

Secondarily, a house is a nice place to raise children, work on your gun and coin collections, grow a hydroponic garden in your basement, etc. But an investment?

If you want to invest, do it with funds that are not needed for survival. Get survival handled first (food, clothing, shelter, etc.) then invest with what you’ve got left. Don’t have anything left? Don’t invest.

Life is so simple when you follow the rules. Unfortunately, common sense is not. We would suggest that if you have funds left over after your survival issues have been addressed, that you try our automated wealth augmentation services for yourself.

We can put you many years ahead of a bank CD and getting started is as easy as requesting your FREE, no-obligation consultation. We stand ready to help you achieve your wealth development goals and answer your toughest questions.

Are Your Investments Performing Like This?

SEP 2012

AUG 2012

JUL 2012

Prism Virtual CD*
It’s not easy for our automated investing software to generate returns as low as a bank CD, but we had to try anyway. Click here to follow along:

TIP: You’ll need to multiply the current monthly return shown times 12 to get the annual return, currently running a little over 1.0%. Bear in mind that this is the same software we use to get 1% per WEEK.

(* Not issued by a bank, not a real CD, not FDIC insured, not connected with any government, offered for comparative purposes only, entertainment too.).

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“And May All Your Investments Be Profitable”


Avert Your Eyes!

The Prism Daily
Your ‘One-A-Day’ financial news-tritional supplement, including trace elements of economic analysis that every healthy investor needs. Addresses a wide variety of monetary afflictions, from vacillation to impecunity. Specially formulated to go down easy! WARNING: Side effects may include elevated cognition and bouts of epiphany. If symptoms persist, unplug cable TV.

Preach & Teach: A Mini Market Moment with Prism Solutions

Introducing Our ’12-Step Program’ For Recovering Investors
One day you wake up, realize that your investments are going nowhere and you’re not getting any younger, and you decide to do something about it. But what? And how, exactly, do you go about selecting an investing service to grow some of your money before inflation destroys the rest of it?

Market research indicates that investors seeking money growing services tend to think in a fairly well understood pattern which often leads to poor decisions, frustration and a reduction in money.

Step 1. – Expectation

This is where the investor creates a mental expectation of what the results of investing will look like (yacht, Mercedes, ski chalet, diamond pinky ring)

Step 2. – Research
This is where the investor Googles for investing services that have just performed spectacularly well over the past few months, not stopping to realize that spectacular performance always reverts to the mean which, while perhaps good, will not continue to be spectacular.

Step 3. – Decision
This is where the investor selects a particularly lucrative looking service based on key decision enhancing elements such as 48-point font web site headlines, lots of yellow highlighting, pictures of attractive people, count down timers (only 11 slots left!), etc.

Step 4. – Acquisition
After making the decision to purchase the investing service, the investor forms a mental relationship with the service and begins to think of it as his or her own. This is the bonding stage of the relationship.

Step 5. – Disillusionment
This is where the performance of the service reverts to the mean as expected, which for the investor who just got in at the top of a recent performance surge means a reduction in equity. Ouch.

Step 6. – Remorse
This is where the investor experiences buyer’s remorse and regrets their decision, not realizing that the basis for their purchasing decision was mathematically flawed in the first place.

Step 7. – Despondency
This is where the investor has already lost so much money that their only remaining emotion is to have no emotion at all, a form of paralysis. Some turn to pills at this stage, others to financial planners.

Step 8. – Panic
This is where the investor suddenly wakes up (sometimes in the middle of the night), hits the panic button, sells everything and kicks themselves for ever having gotten started in the first place.

Step 9. – Expectation
This is where the investor starts all over again looking for another investing service, the one that will surely make them rich this time, beginning with a Google search for a service that: a) just performed spectacularly well over the past few months, and; b) displays the requisite amount of 48-point font headlines, yellow highlighting, count down timers and so forth.

Step 10. – Realization
This is where the investor realizes that they are about to make the same mistake again (a rare investor indeed).

Step 11. – Rehab
This is where the investor discovers Prism Solutions and learns that we don’t have months of spectacular performance followed by months of severe reversion to the mean. We just have one month after another of normative profit manufacture (boring!), plus normal font sizes on our web site. No yachts or Mercedes either.

Step 12. – Satisfaction
This is where the investor’s money keeps growing, month after month, at rates of return that, with the (secular) miracle of compounding, can turn a modest amound of money into a very immodest amount of money in just a few short years.

Today’s Market MRI: David Rosenberg Points To One Indicator That’s Showing No Sign Of A Housing Recovery

Business Insider Reports: “David Rosenberg, the bearish economist at Gluskin Sheff, isn’t convinced that the U.S. housing market is on the up and up. He points to the number of months it takes to sell a new house… ‘How can it possibly be that the housing market is showing a durable recovery when it is still taking a median of eight months for the builders to find a buyer upon completion of the unit? Up until April 2008 – in the midst of the Great Recession – a number this high was unheard-of’…”

Prism Responds: Whatever you do, Dear Reader, do not visit the above web site and look at the chart. Avert your eyes! According to the carefully filtered experts who are invited to present their mildly differing views on TV financial shows in order to create the illusion of meaningful dialog, the housing market is recovering just fine, although we can quibble over the rate of recovery (this is the ingredient that adds credibility to the mix). Please make your delayed housing purchase now. The system needs your liquidity.

Prism Presidential Package
Who will it be this time, Obamney or Robama? We say, elect yourself and you can be the commander-in-chief of your own economy, immune from the depredations of unprosecuted bankers and seditious politicians.

While others leave their money to rot away in bank CD’s, you could be enjoying a nice 3% per month (36% per year) with the potential to DOUBLE your money every two years. How long do you think it will take the stock market to double from here? Will any of us live that long?

Just a $2,500 minimum account to get started and your first billing period is FREE. As for the excitement you’ll feel watching mathematics at work growing fresh equity for you out of thin air – priceless. Get the details here.

And May All Your Investments Be Profitable,

David Taylor and Gordon Philips,
Directors of

‘Better Investing Through Science’

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