The next bubble that threatens to burst is real estate, according to the Economist. Economics editor Pam Woodall says low mortgage rates and the absence of better alternatives enticed consumers to buy houses in record numbers in the United States and several other countries. She says "house prices are seriously overvalued" and will fall in the next few years. "And when they do, the consequences will be far nastier than the stock market bust."
The average job search now is more than four months. Management Recruiters International of Cleveland says there are things to do while looking to better employment prospects. Among their tips: Accept a temporary position. It can lead to a permanent position, and it presents an opportunity to demonstrate skills to the employer. Or volunteer. It helps the community and can be an important addition to a resume. Plus, MRI says, it can be a great way to network.
Don't be afraid of buying high-price stocks in a solid rally, Investor's Business Daily advises. Just as you'd invest more in a quality car or fine jewelry, you generally should pay a premium for stocks. The thinking is a few shares of a sound company are better than thousands of "bargain" shares, which often are highly volatile.
Though Funny Cide didn't win the Triple Crown, Business Week says the fact the thoroughbred is owned by a group of low-profile individuals may inspire other average Americans to consider racehorses as an investment. Members of a horse-owning partnership are liable for all losses incurred but can write off losses against part of their personal income.
Summer brings an opportunity to teach kids about finances by including them in vacation planning. JP Morgan Fleming Asset Management suggests asking kids to research ticket prices before a trip by looking for bargains online, or with advance-purchase rules in mind. On the trip each evening, total the costs to date - the kids may be surprised.
