Sunday, May 10, 2009

Capitalism.

Well, visiting america is quite an eye opener these days. Last time I came here was pre- 911, and I was quite young.

A few things are apparent, and I wish I was more eloquent to put what Im realizing into words. The american economy despite its massive downturn, is very strange. Im here on a mini- mission for dad: looking for investments.

Im not the only one, as the business bestseller shelf in borders is piled with John Grahams classic "the intelligent investor", and "rich dad, poor dad". So some are trying to look at fundamentals ala Warren Buffet.

But strangely, Im not seeing the fundamentals shine through. Its like there is a thick haze... Blurred by advertisments, and bloated promises.

I was suggested to look at GE stocks by a guy I met in the gym, a cpa with a masters in real estate.

And I did, 10 percent dividend return. An amazing return, even if we werent in a downturn economy. Compare that to a fixed rate intrest of 10 years (I think) in the 4s at bank of america
and all goes well in my mini- mission.

Not really, a little checking, and I dont know how GE can sustain those dividends (true my calculations might be off, but still). Too risky.

But if I were to believe him, 10 percent was the be-all, end-all. I would be smooth sailing with GE. an ad.

Real estate fared no better. Haze is there too. Despite falling prices plastered on the news, the two place I visited had strangely high prices for what I was looking.

There are too many middlemen. Too much advertisment.

Not to vsay you cant find, there are some real bargains there. But the more I see, the more skeptical I am.

Inshalla Ill find something, but even if I dont it was worth looking.

and the hohos rock.

3 comments:

Spear The Almighty said...

The Americans are absolutely brilliant at selling crap to us because they tell us that crap is the cool thing to have...and we believe them.

Look at Apple products. Overprized crap but you gotta have it.

Spear The Almighty said...
This comment has been removed by the author.
3li said...

Agreed on the apple.

Consumerism is a scary thing. And A POWERFUL scary thing.