Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Pause Should Extend - 21st April 19
Why Gold Has Been the Second Best Asset Class for the Last 20 Years - 21st April 19
Could Taxing the Rich Solve Income Inequality? - 21st April 19
Stock Market Euphoria Stunts Gold - 20th April 19
Is Political Partisanship Killing America? - 20th April 19
Trump - They Were All Lying - 20th April 19
The Global Economy Looks Disturbingly Like Japan Before Its “Lost Decade” - 19th April 19
Growing Bird of Paradise Strelitzia Plants, Pruning and Flower Guide Over 4 Years - 19th April 19
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19
Online Grocery Shopping Will Go Mainstream as Soon as This Year - 17th April 19
America Dancing On The Crumbling Precipice - 17th April 19
Watch The Financial Sector For The Next Stock Market Topping Pattern - 17th April 19
How Central Bank Gold Buying is Undermining the US Dollar - 17th April 19
Income-Generating Business - 17th April 19
INSOMNIA 64 Birmingham NEC Car Parking Info - 17th April 19
Trump May Regret His Fed Takeover Attempt - 16th April 19
Downside Risk in Gold & Gold Stocks - 16th April 19
Stock Market Melt-Up or Roll Over?…A Look At Two Scenarios - 16th April 19
Is the Stock Market Making a Head and Shoulders Topping Pattern? - 16th April 19
Will Powell’s Dovish Turn Support Gold? - 15th April 19
If History Is Any Indication, Stocks Should Rally Until the Fall of 2020 - 15th April 19
Stocks Get Closer to Last Year’s Record High - 15th April 19
Oil Price May Be Setup For A Move Back to $50 - 15th April 19
Stock Market Ready For A Pause! - 15th April 19
Shopping for Bargain Souvenirs in Fethiye Tuesday Market - Turkey Holidays 2019 - 15th April 19
From US-Sino Talks to New Trade Wars, Weakening Global Economic Prospects - 14th April 19
Stock Market Indexes Race For The New All-Time High - 14th April 19
Why Gold Price Will “Just Explode… in the Blink of an Eye” - 14th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Time to Hit the Reset Button on Life

Personal_Finance / Employment Jul 08, 2010 - 05:10 AM GMT

By: DailyWealth

Personal_Finance

Dr. Steve Sjuggerud writes: "We're going to have to write a big check to get out of our house," a friend told me over the Fourth of July weekend.

He's moving far away from here.


"We close on our house this month," he told me. "I'm trying not to see it as a big loss, though. I figure we're just trading out... I figure the house we're buying where we're moving is probably at the same kind of discount."

My friend and his family have to recalibrate their lives...

Back in the real estate bubble, they were living high, hardly working. They'd borrowed heavily and put it into real estate, which gave them a large and ever-increasing net worth... until the bubble ended. I'm not sure how much of that net worth has disappeared – but there's a chance that most of it is gone.

The regular vacations and extravagant lifestyle are things of the past, for now. He is back to work – hard at work – in a new town, with a new life. With his willingness to change, and his work ethic, my friend will be a success at whatever he chooses.

He is one of the few smart ones out there now... He is moving on. He has changed careers. He's moved far from our bubble area. And he's recalibrated back to a more normal standard of living.

Surprisingly, many intelligent folks haven't acted as smartly as my friend.

You see, where I live on Florida's east coast, real estate and tourism were the top businesses in the bubble. Now, both of these are dead. Yet the guys who were successful in the bubble haven't moved on. They're still sitting on their real estate or their tourism-related business, hoping for a return to old times.

While the tourists will return and real estate prices will bottom some day, the brutal reality is, we won't see the same levels of spending and real estate prices for possibly a decade or more – longer than that crowd can wait.

So what can you do?

Taking a huge loss on your home doesn't sound like fun. Finding a job far away in a non-bubble industry is a tough decision to make as well. But my friend is doing the right thing, and he has the right attitude.

In short, instead of sitting around hoping the good ol' days return while his investments fall in value, he bit the bullet. He's making a new life with a more normal standard of living.

In a decade, he'll have the money to buy all the real estate around here he wants. Meanwhile, the guys who sat around moping and hoping won't have the money or the optimism in a decade to buy.

If you're in a position like my friend was – in a bubble town in a bubble industry – don't forget you have a choice. You can stay and hope the bubble days return. Or you can leave and try to create a better life.

I realize 99 people of out 100 will stay and hope. But it might be time to do something bold... something like my friend did. He can always come back, and it will be just like he left it. But now that he left, he's succeeding... I'm not sure when he'll return.

Good investing,

Steve

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2010 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules