Thursday, May 22, 2008

Investment Money 'Resting'

The headline to a story by Robert Manor caught my attention:
"Investment money 'resting,' but will be wake up when market improves"
He writes:
Wrightwood Capital CEO Bruce Cohen, who believes commercial real estate experts are deep in the dark, is surprisingly upbeat about an industry that seems to be at least a little paralyzed.

"There is absolute clarity and certainty that no one knows what is going on," Cohen said at a conference sponsored by the University of Chicago Graduate School of Business. He sounded optimistic.

No one can say when lenders will open their vaults and make a loan. No one can say when spooked buyers of almost any kind of real estate will come out of hiding. No one can say what, if any, effect the election will have on the market.

Cohen's company specializes in real estate finance and investment in commercial real estate, and it has been involved in hundreds of deals. So that gives him some street cred when he says that the gridlock in commercial real estate sales is not a permanent traffic jam.
Frugal Ben Says:

If you are a speculator, you might want to be chasing profits in commodities right now. But the typical middle-class investor might be best off in cash and CD's at the present, with a few high-dividend-paying stocks thrown into the mix.

There are times when there simply are no good ways to make large returns .

When that's the case, CD's and cash and forget-about-high-returns-for-awhile might be your best option.

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