Stocks advance with tech sector in the lead

Mercury News ^ | 5/30/03 | David A. Sylvester

[NormsRevenge]

Silicon Valley tech stocks led the surging market today, as the Nasdaq ended May with its fourth straight monthly gain in a row -- something it hasn't done since the bubble days of late 1999.

The latest boost to the two-month-long rally came from a report that business expanded in the Midwest in May. This gave investors hope that the manufacturing economy may be turning around from its prolonged slump.

[ErnBatavia]

I think most of America has learned by now to avoid the "stock market"....regardless of the stats, op-ed pieces, etc., etc., etc. - the wheel has turned for awhile. This is a large part of why the real estate market, for example, is still nutzo with people still buying at the very top of the market.

[RightWhale]

That's true. Even that tech stock I own 10 kazillion shares of at a fraction of a nanodollar a share jumped 30% today.

[Moonman62]

I think most of America has learned by now to avoid the "stock market"....

[ambrose]

Bump!

[ambrose]

the real estate market is being driven by low interest rates.

[wardaddy]

Amen.

[wardaddy]

Amen again....commercial development is my business and I have banks offering(unsolicited) me incredible deals to place money. I'm about 55-60% equity right now and they are offering me new financing at 85% of appraised value at rates around 5% evergreened for 2 years and then a 3 year P&I balloon. 20 year Amorts....with no personal recourse and maybe 1/2 a point in fees with no new appraisal...just a new stamp on my old ones. Incredible...it's a borrowers market. Five years ago, I would have gotten maybe 75% of equity financing, full recourse and 7-8% rates with no evergreen.

Sadly...I have one project underway but no new plans on the table to utilize the cheap(tax free) money.....but I'm looking harder...lol

I can only imagine what the big institutional boys like insurance companies and pension funds are offering on 30 year fixed rate amortizations.

[ambrose]

I have been shopping around for a house/condo in the LA area, and it is just CRAZY. 300 grand for an 800 square foot shack in Highland Park, which is a heavily Hispanic urban area. Simple one bedroom condos go for well over 200 grand, and they usually sell above asking price with multiple offers pending. Of course, the agents always sell it as "It is only $1,000 per month!" Yeah, after you put 20% down, property tax, insurance, closing costs, interest, maintenance, etc.

Good interest rates or not, I think I'll continue renting while housing is so crazy. We're just in the beginning phases of a new Bull Market, and the saved downpayment and monthly expenses from renting can grow much faster than buying at the top of the real estate bubble.

[wardaddy]

I don't see how you guys do it out there. And the Kali market is cyclical so when it turns down, you could easily get "upside down" on your home condo.

Here in Nashville which has the highest new home median prices in the South, one can still get a decent home in a decent area for no more than 100-125/foot. Quite nice homes go for maybe 200-250/foot in great areas.

Some of the palaces with all the trimmings might hit 400/ft.

I looked at a home on the internet last nite near me ...a new home...with metal studs....9,000 sq ft for 1.45M..(on Tyne Blvd. one of Nashville's toniest streets)...expensive for sure but the price per foot was lower than I expected.

I got into my home in one of Nashville's best areas for 78/foot...just pure ass luck...the heirs were desperate...the home next door sold for 135/foot 4 months later.

I would think about moving. It's a great country and you can get a good "lifestyle" for much much less. Homes are "lifestyle" after a certain point.

I used to live in Manhattan....now with 4 children...I would not live there again for less than 600-750K/yr....which ain't gonna happen...lol

I looked up Al Gore's house last nite while I was at it. In Belle Meade (Nashville's Beverly Hills). 6500 sq ft Cape Cod on 1.5 acres with pool Al and Tipsy paid 2.3M last year.

[ambrose]

Here's an example of a "bargain" in Los Angeles:

http://visitors.themls.com/search/profile_page.cfm?mls=03-018631&property_type=0&pass_la=Logan%2C%20Rodney


Insane, huh?! That dump is smack dab in the middle of the ghetto!

[wardaddy]

Wow....for that you can get a decent 2-3 bedroom bungalow near Vandy or Belmont here or maybe a gentrified quaint home in East Nashville.

It would buy a standard 3/2 2200 sq ft in the outlying areas.