Showing posts from November, 2012

Random Snippets

Apologies for thin posting.  Lots in the air, even more than usual, and this blog sits low on the priority list. A few brief thoughts below.  Maybe more on these later. Macro Observations Stocks and homes look like an incredibly good buy .  Price to earnings ratios for stocks and price to rent ratios for homes are around historic averages.  But prices are a lot better than average because the opportunity cost, reflected in interest rates, are at historic lows.  Put it all together an stocks and houses haven't looked so cheap in at least 60 years. Housing and broader economic recovery .  Prices are finally rising nationwide, as are housing starts.  We appear to have a shortage of homes for an economy at full employment.  Thus, we should expect building to resume to at least historic norms soon.  That should bring back a lot of construction jobs.  Add a modest multiplier, consumer confidence with higher home equity and portfolio values, could bring about a virtuous cycle that