Take Advantage Of Current Conditions In Bear Market
SOURCE: The Motley Fool
In the first quarter of 2006 speculation was truly out of control. Twenty-six percent of loans were of the interest-only or negative amortization variety... The statistics are damning. In 2005 and 2006, 20% of all mortgages were subprime, and a further 12% to 13% were low-documentation Alt-A loans.
The turmoil in a bear market can make for some astounding investment opportunities. The challenge is to find those substantial opportunities that are to be had at this time. Some stocks are believed to be trading at a 60% discount from their fair value. This could work out to a 150% return if these stocks appreciate to what it's felt they're worth.
Even though these returns won't happen overnight and are contingent on the economy picking up over the next few years, if an investor has the ability to work with a longer-term time frame, it could be well worth their while to take a hard look at some of the deals out there.
Read full report »
In the first quarter of 2006 speculation was truly out of control. Twenty-six percent of loans were of the interest-only or negative amortization variety... The statistics are damning. In 2005 and 2006, 20% of all mortgages were subprime, and a further 12% to 13% were low-documentation Alt-A loans.
The turmoil in a bear market can make for some astounding investment opportunities. The challenge is to find those substantial opportunities that are to be had at this time. Some stocks are believed to be trading at a 60% discount from their fair value. This could work out to a 150% return if these stocks appreciate to what it's felt they're worth.
Even though these returns won't happen overnight and are contingent on the economy picking up over the next few years, if an investor has the ability to work with a longer-term time frame, it could be well worth their while to take a hard look at some of the deals out there.
Read full report »
