The Rising Rent Problem

 Let me start this out by say this is not an article compaining of any conspiracy, or hating the rich or any of the nonsense you read all over the internet. However there is a big problem going on with real estate prices and we as a country need to realize it before the inevitable happens.

 A good amount of Americans are renters since the recession and although recent job data tells you job growth is rising I don't think anyone is excited about their part time Walgreen's job. Because of this, real estate has sky rocketed much like the stock market in recent years. This is good to a certain extent. When real estate came back from the crash it was good for this country. However once the real estate boom inflates the cost of living it becomes a bad thing and that's exactly what's happening right now.

The average rental rate in America is over $1000 right now. People hear this and say buy a house. But what about the millenials moving out of their parents? It's ridiculous to force them or anyone into a 30 year mortgage just to get a reasonable rate of living. The problem is you're also stuck in a mortgage, many of which are sky high right now due to rising prices. Either way you lose when you think about it.

 I currently had my rent increased from 1100 to 1300 in my own apartment. I tried relocating to a cheaper location (I would have been saving about $100 a month from what I was previously paying) but was told I  now make too much. Keep in mind, you're told this in Florida if you make 35,000 or more a year. How does this make sense? People say this makes sense so that people with lower income can afford it. Keep in mind, I'm looking at an apartment for $1000. Why would apartments for these prices be reserved for someone with low income? When I see things like this and then most people say they don't have any savings it's no wonder why.

People have tried looking for cheaper solutions only to have zoning or construction laws get in the way. So this is where something needs to give. Obviously greed is driving up rental rates to unsustainable levels. This is inevitable and eventually the market will correct itself as it usually does. However if you have laws restricting people from cheaper options you almost force these insane rental rates or mortgages on the people. If people who make 40,000 or more a year are forced to pay over one third of their earnings on just having a space to live while not including taxes, utilities, living costs, etc. how can people ever save up?

If we keep going the same way we're going things will crash just like they did before. Lawmakers have to allow renters more flexibility. If they allow people cheaper housing options (no i'm not talking about parking a trailer in a neighborhood) rather then forcing laws on landlords the market will correct itself without government sticking its nose in business. They can keep talking about lower energy costs all they want. It means nothing when your housing costs are insane. As I said before, something needs to give here. Hopefully it wont be the economy this time.

Learning how to live with volatility

Volatility has become a popular word lately. Some love it, some hate it. While I do think the recent endless batch of volatility has been a bit much, the right amount is a beautiful thing. Why you ask? It's common sense.
To understand we go back to the basics: Buy Low, Sell High. 
When the market gets slaughtered it allows traders to move in when stocks are low and make a quick exit on good days of the market when stocks are high. Most people think you have to wait for a market crash to turn a good profit off the stock market. This is simply not true. If you want to own the stocks the media pumps up, sure you probably would have to wait for them to crash. But smart investors will realize they don't have that advantage so they move on to the next trade.
It takes time and research, but there is always a profitable company trading below its moving average and that's where you make a killing off volatility.

I don't claim to be a market expert like everyone on Twitter, but by now I've learned a thing or two in my time on the Stock Market. The one thing that has become crystal clear to me is avoiding the noise. You see when traders watch CNBC and hear them pump up over inflated, non profitable stocks like Twitter and Tesla and then drool as they listen to analysts declare sky high price targets, justifying it with this weak statistic or chart analysis things start to get ugly and investors lose money. Why? Because now traders are making fundamental mistakes.
#1 They're buying the stock when its high, hoping that the stock will get them that shiny $30 dollar price gain. Good luck with that one. Warren Buffet would be ashamed.
#2 They're doing this based off inflated fundamentals. Looking at strictly revenue or annual EPS growth does not tell a stock's full story. This now sets the investor up for huge losses when the stocks misses analyst estimates or doesn't live up to the hype.

Even traders with the intention of making a quick trade lose out when following these guide lines. I remember something I read when I first got into stocks from Warren Buffet, "If you wouldn't own a stock for ten years don't own it for ten minutes"
Technical traders would argue that's not always true and they have a point as you can profit from using chart analysis, assuming you're good enough. however sometimes numbers/charts DO lie and that's where the fundamentals come in. Sure it's nice to buy a stock below its 200 day moving average. But is it profitable? Can it make it back up? Why are investors dumping the stock? Looking at the fundamentals along with the chart will tell you what you need to know.
Inside information is illegal, and depending on your broker or the media to help you make the right moves is a recipe for disaster. The greatest defense you have is your knowledge of the markets.

Speaking of defense, You hear people say buy gold, buy bonds, etc. to protect yourself in stocks. If that's your strategy your better off putting your money in a savings account as you'll get about the same rate of return without the hassle.
In my opinion the only real way to defend yourself is by buying high and selling low. For most of the big name stocks you constantly hear about, this is almost impossible to get a stock for good value because they're so over inflated. So you have to ignore the noise and go hunting for true value deals.
To illustrate this for you, say I buy stock X at 17.00 the following year it rises to 67! woohoo! but wait, now it just fell down to 27 from a sudden, devastating move to investors. So while all the sheep that bought the stock when it was trading more then 10 times book value get slaughtered while the hunters who bought it when it was low and hidden away from the hype are still standing with a profit.
Is this a perfect scenario? Of course not, but it shows you how in the event of the stock crashing you can not only prevent losses but also still turn a profit. This is due from buying the stock at the right time.

We as human beings tend to complicate things, and the stock market is a fine example of that. While it's not easy, it's more difficult then it appears because people make it more complicated then it needs to be. My suggestion? stick to the fundamentals and rules of analysis.

I hope you're enjoying this cheap oil...

Hey, did you hear? That oil stuff has gotten pretty cheap these days!

I hope you've enjoyed it, because it looks like we may be coming to a close. Why? I've been doing a bit of research and this is what I've found...

The dollar is testing all time high levels right now. Looking at the dollar chart, this is where we are...

Since the 9th, the dollar has started to slide downwards. At this same time, gold has started to trade upwards. When you add in the fact that everyone from the television analyst to your grandmother is bullish on the US Dollar it gets pretty obvious where this one is going.

Right now GDXJ (Gold) and Dollar Short ETFs look promising. Remember, it's about jumping in before the masses do, that way you buy low but sell high. As you have probably heard the markets are going through rough waters right now. A big part of this is oil and a stronger dollar. You see, a stronger dollar makes US exports more expensive for foreign countries. This is bad for Wall Street when over 30% of their profits come from the foreign market. Not only that, the #1 employment sector in the country which would be energy is cutting jobs left and right. Not only will the rich get hit if things don't slow down but so will the working class. Even though they say they're ending QE it wont surprise me to see the fed keep interest rates down as they realize economic growth is not yet where it needs to be. Inflation is BELOW where the fed wants it to be, so common sense would tell you they'll do what needs to be done to raise it.

Last but not least, Oil is literally about a dollar above one of its lows. Oil could end up shocking the market and end up coming back around $43.  I'll be watching commodities as a whole and keep my readers updated. 

Finding value

Doing a little bit more research, I'm interested in luxury retail stocks Coach (COH) and KORS.

Both have potential for growth but potential for decline as well. Both companies are expanding more internationally, which is a good sign. Kors has been doing well in 2014. However investors might want to watch their earnings. They were giving out heavy discounts over the holiday season which could bring a disappointing report this quarter. I do like how coach is cutting back on overhead costs and expanding their brands not just internationally but to men along with women. They also just bought a luxury footwear brand that should bring an immediate boost to earnings.

However, Coach is not without its flaws either. It had a brutal 2014 and is struggling in North America. Re-gaining footing in the American market will be important for this company. Both stocks are trading well off their highs so the potential for big profits is there. Again, I advise you to do your own research different people have different reactions to certain reports about stocks.

Also watching: QCOM, DLPH, CS

Buying Some Promising Stocks On The Dip

Buy Low, Sell High...

MU Micron Tech

NSRGY Nestle

TSCDY Tesco

MU only dropped due to investors typical emotional response. I bet it not only comes back (I'm already in the green from buying @ 33..I bet it has good growth too)

NSRGY Nestle`, like all processed food brands has been getting spanked. But make no mistake, this is still a company with a strong reach. More then anything, they announced a share buyback in August. Most of the time, this will lead to a decent profit for investors. Buy it now while it's still under 72 before it goes above 73 when it comes back. After that I expect the buyback to kick in and boost the price a bit..We shall see.

Also..AAPL is a bargain right now, and earnings should be solid this quarter. You have a potential price target of 120+.

I also REALLY like Alibaba at this price. Another stock that I think will pop to 120+ potentially comes earnings

Gold Might Be Shining Again

Is gold ready for a comeback?

Struggling world economy, political tension throughout the world that's not cooling off, falling stock prices...

Gold is a very, very risky pay as anyone can tell you. But profiting off the stock market is heavily related to timing the opportunity right. Right now could be the time for gold. If oil continues to fall, the US economy will sputter with it. More jobs will be lost then gained, hurting main street. Falling oil tends to beat down the stock market, hurting wall street. At times like this demand for gold increases, the now cheaper gold supply suddenly decreases.

Now, it's not that simple either. See, if the markets crash gold will go down as well. If the market correct itself (which I think is more likely) then you're in a good market for gold. I'm going to do quite a bit more research on this, but I would strongly suggest watching gold right now.

EDIT- As I've looked at the chart, the dollar peaks around 96 and gold's next low is in the 800-900 range. It might be worth it to hold off on Gold, while waiting for the dollar to hit its peak then start to decline. Just sayin'..I'd rather buy gold at 900 an ounce then 1200.

Building Wealth Slowly

You know, in the last year I can honestly say I've done a lot of research on Business and Finance that I never thought I'd have the patience to do.
To be honest when I started I was like a bull seeing red looking to charge in only one direction: The Road To Riches. In my pursuit I've leaned new ways to go about building your wealth that I'd like to share with you. I'm not a millionaire (yet) so I'm not going to talk to you like one. Instead, I'm just going to give you some guidance that has helped me.

Rule #1: Live Within Your Means
"If you buy things you don't need, soon you'll have to sell things you'll need" - Warren Buffet
This is rule #1 because it's the first one we all break. It's human nature to have a desire for more then we need. Not being able to control this will leave you broke. Always make sure you're making more then you're spending each month. If you operate a business or have a job you want to make sure you're making a profit each month. What do you do with that profit? Stack it up and invest in something when you have enough money to do so. Do NOT spend it on material things.
Buy a used car, get a roommate, shop at walmart (you gotta do what you gotta do) just focus on reducing costs while increasing cash flow. Limit your bills and your spending habits and suddenly you'll enjoy looking at your bank account rather then dreading it.

Rule #2: Avoid Credit Cards
This is a big one. First off, yes you should build credit. However having a monthly budget with interest on top of it every month is a no-no. If you need to build your credit, put half of your monthly gas budget on it for a few months, and pay it off in full each month. Make sure you do not carry a balance. Once your credit is established, stop using the credit cards and save your credit for quick flip investment opportunities. Credit is also bad because it develops bad habits such as people spending more then they make and not managing their money. If you enjoy the convenience of a card over cash, use debit.

Rule #3: Invest Your Money
If you think stuffing money away in a piggy bank, mattress or savings account is going to help you build wealth you're wrong. While you want to save your money, eventually you need to put it to use. You need to be very careful before investing in anything regardless if it's a business or stocks. Research what ever it is you're interested in until your eyes bleed. I cannot stress this enough. You don't fear risk, but you damn sure better respect it.