There are bargains out there in real estate that you ought to buy right now.
No, no, stop laughing. I'm serious. All right, wipe that smirk off your face. Give me some credit. Of course, I don't mean shares of home builders. I still wouldn't touch them with a 10-foot pole. And I don't mean mortgage lenders, big banks or Wall Street mortgage traders. Those are toxic and likely to get more so.
No, the kind of real estate I mean is the kind you can walk on but can't bundle into a tranche and resell. Real assets that don't evaporate when the rocket scientists on Wall Street get it wrong. You know, the earthy stuff they're not making anymore, except in the Netherlands.
The stuff that overseas investors with U.S. dollars burning holes in their pockets will buy to diversify their portfolios away from U.S. Treasury bonds and to protect their holdings from any further decline in the dollar.
Land, I believe it's called.
Buy ahead of the herd
Today, you can find some great bargains on land in the U.S. stock market, if you know where to look. Buy now, and you'll collect a dividend in many cases that will give you some income while the stock market works its way through the current mess.
Land also offers some downside protection in case stocks as a whole head further south. Buy now, too, and you'll own these assets ahead of the herd of overseas investors that will discover this asset class, once panic passes in the wake of the meltdown in the U.S. market for mortgage-backed debt.