Over the long run, I have profited more from real-estate than either stocks, commodities, gold, cash or artwork.  And, today, although I follow many financial markets -- I expect that my largest investments will be made in southern Nevada real estate.  In fact, because I view this as such a sensible, low risk opportunity, I have now become licensed as a real estate agent.  I have affiliated with Elite Realty in Las Vegas.  My intention is to use my license and professional real estate connections primarily to aid in gaining the inside edge for my own investments.  For me, real-estate seems like an appropriate balance to high-risk speculations in futures and stocks.  As a licensed agent, I am also available to help locate properties for others who would either like to move here or to invest in real-estate here. 

There has been much speculation in recent months as to whether the current real-estate boom is actually a "bubble" that will inevitably lead to a serious downturn in prices -- just as has happened with stocks.  I have followed the arguments both pro and con, and it seems to me that a good case can be made for a "pop" in the bubble in those locations where real-estate is over-valued.  I think that cities such as San Francisco, Washington, DC, San Diego, Los Angeles and New York are vulnerable.  It seems to me, however, that real-estate in southern Nevada will be less susceptible  to decling prices.  In fact, I think real estate here is likely to outperform stocks and bonds for the following reasons: 

(1) Even though the stock market is down significantly from its 2000 highs, many consider stocks to still be over-valued.  Other articles in previous editions of the Forecasting Systems Letter, and elsewhere, suggest that there is still much potential downside in the stock market. 

(2) Because interest rates are now at 40 year lows, real-estate is especially affordable right now.  At the same time bonds are now a somewhat riskier investment; because if interest rates rise, as they inevitably will, bond prices will decline. 

(3) The southern Nevada economy is also supported by more than 30 million visitors each year.  This area is actually the largest tourist destination in the world.  It is generally considered to be more immune to recessions and declines in the business cycle than most other communities. 

 

(4) For the past decade, and beyond, Clark County has been the fastest growing metropolitan community in the United States.  Over 5,000 new residents move here each month.  People are attracted by the low tax rates (no personal or corporate income tax), the low cost of living, the general economic boom, and the many recreational opportunities in this area.  The economic boom here attracts a regular flow of potential renters. 
 

(6) Many new homes are available in Clark County at attractive prices that make them suitable rental properties.  These homes typically come with a one-year warranty from the builder and often can be found in new developments where property values have tended to increase. 

Obviously, many factors contribute to the profits attainable in real-estate investment: land appreciation, property depreciation, favorable financial terms and potential tax write-offs for interest payments, insurance, property tax, maintenance and other expenses.  There are many personal factors that will go into your determination as to whether real-estate is an appropriate for you.  If you are interested in exploring this with me further, you may contact me by e-mail. 

BioComp Profit Neural Network S&P 500 Futures Contract "MegaSystem" Forecast: 
Thursday's Close: Down from Wednesday's close 
Friday's Close:  Down from Thursday's close 

Nirvana OmniTrader Composite Technical Forecast for the S&P 500 Futures Contract: 
Short-term, aggresssive strategy: Down. 

NeuroShell Volatility Breakout System, Daily, for S&P Futures Contract:  
Buy Stop Order for Wednesday at 894.90, filled. 
Sell limit on Thursday at 895.50. 

KWIK*POP Daily Trading Signal (As Confirmed by Hourly Chart) 
Buy (887.70, 7 pm, PST, Thursday) 

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