U.S. homeowners lost a cumulative $3.3 trillion in home equity during 2008, according to a report from Zillow. (MortgageWire.)

One in six homeowners is now underwater on their mortgage.

The stock market erased $6.9 trillion in shareholder wealth in 2008.

Add together the loss of housing equity of $3.3 trillion and the stock market loss of $6.9 trillion, and you’ve got a historic loss of wealth of $10.2 trillion.

To put that number in perspective, it’s almost one fifth of the GDP of the entire world. It’s about the size of the US Debt at the end 2008, meaning we could have paid off the entire debt of our government with the money we lost last year.

Is this going to happen again? As the bull market ages and shows signs of significant corrections, perhaps it is time to learn how to invest your money when markets are uncertain.

Growth versus Value

We recently wrote about the need to switch your investment focus from growth to value.

Unless the stock market stages an unexpected late rally, the month of February 2018 will be the first February since the 2008 market crash where stocks have gone down instead of up. Inflation is gaining momentum and interest rates are about to go up from years of historic lows. The unique financial conditions of the last several years have been ideal for high tech growth stocks, the FANG group especially.

But, now that conditions are changing, growth stocks are overpriced and at risk for a major correction. The better choice for many investors is to move into value stocks and other investments. But, what is a value stock?

The Dow Jones Industrial Average is down about 8% since we wrote that but the S&P 500 is virtually unchanged.

Listen to the Voice of Experience

On these pages we like to quote Warren Buffett. He is one of the three richest men in the world and often is number one depending on how Bill Gates and Carlos Slim are doing. And that is despite giving away several billion each year to charity. Buffett famously said that the first rule of investing is not to lose money and the second rule is not to forget the first rule. If you have made money on growth stocks in the bull market now may be a good time to take some of your money “off the table” because you indeed do not have a profit until you have taken a profit. Aside from cashing out of the market how can you learn how to invest your money when markets are uncertain? The key is to learn how to calculate the intrinsic value of an investment. Benjamin Graham showed us how to calculate intrinsic stock value in the years after the 1929 crash and Great Depression. This approach works for other assets such as real estate as well. Investors like Buffett have accumulated great wealth over the years by using this approach and never investing in something that they did not understand. If you do not understand how a company you are invested in is making its money then it is time to get out and take your profits.

To start fundamental analysis of the prospect of a fast versus a slow demise of quantitative easing let us start with just quantitative easing really is.

Quantitative Easing

When the worst recession in three quarters of a century occurred luck would have it that Ben Bernanke was already the chairman of the US Federal Reserve. Mr. Bernanke is probably the world’s greatest expert on the causes of the Great Depression. The short answer to why the Great Depression occurred is that the government of the USA tightened credit when it should have eased it, started a trade war, and failed to find ways to stimulate the economy. When confronted with a possible re-run of the Great Depression on a much worse scale the US Federal Reserve and then other central banks initiated Quantitative Easing. This policy involves buying financial assets from commercial banks and other private institutions which in turn increases the monetary base. In addition, the Fed has been buying $85 Billion in treasury bills each month. This has driven interest rates down, soaked up the bond supply, and sent bond investors into the commercial bond market for investments. Quantitative easing has reduced interest rates and increased the value of pre-existing bonds. The general consensus is that Quantitative Easing has helped the US economy, and the world, avoid another Great Depression. But, now the prospect of a slow demise of quantitative easing has markets concerned. Now what do sound stock investing principles say about the slow demise of quantitative easing?

Interest Rates Are Going Up

As the need for the Fed to perpetually dump money into the US economy fades away and bond purchases diminish, interest rates will go up. Bond investors are already dumping low yield bonds and holding cash while they wait to re-invest at higher rates.

The Dollar Is Rising

Higher US interest rates drive up the value of the US dollar in the Forex market. This reduces the cost of foreign goods as well as foreign investments. One may consider investing in foreign stocks as they become cheaper. You may wish to take a look at our article about three good offshore investment ideas .

Increased Import and the Long Term

Gold is heading downhill as interest rates rise. However, a stronger dollar will likely attract more imports and continue to erode the US balance of payments. True gold bugs do not speculate on the short term rise and fall in gold prices but rather on the slow and steady rise of gold against a steadily devalued dollar. Over the long term the slow demise of quantitative easing could bring gold and make it profitable to invest in gold as it bottoms out in the near future.

More Resources

Considering home ownership, how does real estate investing work for someone buying a home? The home buyer will look for property located within a reasonable distance from work, schools, shopping areas, and recreational activities. The home buyer will also look for the size and type of house in which he or she wants to live, raise a family, or retire in. Within the above constraints, the home buyer will look for the most advantageous price, mortgage terms, and availability of property. The home buyer will be able to write off mortgage payments against taxes and will, commonly, see the home investment appreciate in value over the years. He will also be engaged in repairs, maintenance, and home improvements or additions over many years. Although he will look for the best real estate deal in buying his home he will also be limited in his investment by where he will live, work, and send the kids to school. Although he will ask himself what is a good investment in real estate his purchase will be largely constrained by the facts of his life.

In comparison, how does real estate investing work for someone speculating in the real estate market? In a rising market a speculator can look for the most profitable opportunities. He will look for short sales and make short term profits from buying a distressed property at a low price, fixing it up, and selling it at market value when prices are rising. Unlike the home owner who will hopefully never have to ask himself, what is a short sale in real estate, the real estate investor and speculator will seek out these situations in order to profit from real estate investing.

How does real estate investing work for a real estate agent or someone in home construction? These individuals find more profit in an active market as their income derives from the volume of work that they accomplish. The realtor, especially, may be a good source of advice as to how to start investing in real estate he will have a broad and clear view of the real estate market as it evolves in his locale.

For the investor interested in investing in somewhat more passive approach to real estate how does real estate investing work for a REIT, a real estate investment trust? These are a profitable means of investing in a rising real estate market and can be purchased and sold like stocks or bonds. Just as stock investor will want to know such things as how to determine stock volatility the investor in REITs will want to have a clear idea of what types of real estate underlie his investment and what market conditions are.

More Resources

• » 2011 Tax Credits For Energy Efficient Home Improvements Like Insulation, Windows, Doors, Heaters, Stoves, Solar Panels
• 2011 Tax Credits For Energy Efficient Home Improvements Like Insulation, Windows, Doors, Heaters, Stoves, Solar Panels
• Home Improvement Blues | Snowflakes in Hell
• Home Improvement’s Zachary Ty Bryan Sues for More than “Show Sucking” | GlossyNews.com
• How To Tackle Real Estate Investing | Worldprofit Articles
• The first thing in investing in real estate – – World Real Estate site – Sell your Home, Search Homes
• Real Estate Investing Courses | Investing | Real Estate Investing Courses
• Real Estate Investing Courses | King of the Bop
• How to Calculate Monthly Mortgage Payments, Calculating the Monthly Mortgage Payments
• How Would You Like a Life Without Mortgage Payments? « Real Estate Blog

Besides simply buying at a low point in the real estate market and waiting years to sell here are a few other options. One can profit from real estate rental and from flipping properties. Managing real estate can be quite profitable. The person interested in profitable real estate investing products will learn about how to profitably use lease options. He will become familiar with tax liens and how to manage cash flow when dealing in real estate. There are very profitable medium and small sized properties. Not all real estate profits come from shopping mall sized projects. Mobile home investing can create wealth. Becoming familiar with land trusts, limited partnerships in real estate, and alternative financing opportunities are all part of learning about profitable real estate investing opportunities. Like learning how to invest in anything a little time and effort will be involved.

Taking real estate opportunities and coming out with cash is the dream of every real estate investor. However, the investor may want to look into how to avoid continually paying capital gains taxes on profitable real estate investments. Finding real estate opportunities is a skill set all of its own and takes a knowledge base, practice, and time. Profitable real estate investing products starting with EBooks and online seminars will help the beginning real estate investor learn how to spot foreclosures and distress property opportunities. The investor does not need to wait for the next recession to spot cheap properties and does not need to wait until the next market bubble to profit from his participation in the real estate market. Start by asking yourself what is the first step to investing. Then consider investing in real estate.

To become skillful in applying what one learns about profitable real estate investing products the investor will often need to work in or closely with the real estate market. Those in home construction can benefit from building homes on speculation. A person who spots real estate opportunities for a real estate agent will have an inside view of real estate. Someone working in real estate management may find sufficient and satisfying profit. The same person will likely be exposed to numerous other real estate opportunities as well. This all starts out by learning about and then taking advantage of profitable real estate investing products. Just a stock investor learns fundamental analysis the real estate investor needs to learn the fundamentals of his trade.

More Resources

• Long Term Capital Gains Tax
• tenants in common u0026 cgt [capital gains tax] [mum and dad] | Mortgage Free
• Benchmarks » Blog Archive » Flip this house: Spurned buyer seeks lost profits
• Accubation Real Estate Investment Costs | Akira Daily News
• House Flipping Tips » The Value of Property Management for Real Estate Investors
• Has Anyone Purchased Property From Uls Properties Inc? | Site Flipping Secrets
• Make Money Flipping Properties
• Guides on Property Flipping – The Realty Blog
• Reiki: Why Reiki Home Study Courses are a Very Good Idea | Praying Hands Ranches
• Forex Mastery Review- The Buzz About Options University’s Forex Mastery Series Has Taken America By Storm | Currency Trading Exchange Guide

Being a real estate investor is really not that complicated. You don’t need a doctorate degree from some prestigious university or become a rocket scientist just to make it big in the real estate investing business. In fact, some of the most successful investors in the country today are college dropouts and they are still doing great despite their lack of formal education.

If you plan on investing in real estate, meanwhile, here are some traits and qualities that you should consider developing to ensure your success:

If you find this article helpful, you can read more information on real estate investing on www.Rehab-Real-Estate.com. The website is home to quality articles and videos that can help you become a better real estate investor.

You need to ensure that all the deals are profitable and by knowing the basics, you will definitely reap significant profits.

It’s quite ordinary to encounter challenges as your start investing in real estate. Even if there are pitfalls, you should not be discouraged to pursue your investments. You just need to ensure that you learn from your mistakes because this is one way of learning from your experiences. As years pass, you can already master the closing of profitable deals and walking away from bad ones.

If you want to be successful in the real estate business, you need to know some of the basics. You can use these things to create a profitable investment portfolio.

1. Learn how to find the right seller at the right place and time.

2. You should learn the qualities of a good negotiator so that you can close good investment deals.

3. When looking into various real estate deals, you should be able to decide quickly whether you will proceed or walk away. Try to accurately analyze the investment deals and then make an informed decision.

4. You need to be familiar with the various areas of the real estate business. Know the different terms like wrap mortgages, cash sales, lease options, short sales, and many other terminologies. This is one way to understand the language used by your fellow investors.

5. Know the concept and meaning of real estate investment, as well as the benefits and financial risks.

After you’ve learned about the basics, it’s up to you to decide whether you will enter the real estate business or not. If you simply put your best effort to it, you can earn potential rewards. Don’t be surprised if you have little confidence when you enter the real estate market because as you gain experience, your confidence will grow. It will surely help if you’re able to close a few good deals after you’ve began investing. But you don’t need to be satisfied with the deals you’ve closed. You can still close better deals in the future.

Develop your skills further by reading more real estate info resources. Learning is a continuous process. As you become more experienced and successful, your investment portfolio will also grow.

Have a game plan and look for hidden opportunities. You need to study the current market and the buying trends. Once you find the opportunities, grab them and you will reap huge money.

Real estate investing is for everyone but it entails hard work. Many people are already choosing this profitable career to ensure their financial stability in the future. Again, be ready for the possible pitfalls and challenges that you will encounter in the first few years. This is natural but you need to learn how to face them. By being more informed and knowledgeable, you can make the best decisions for the improvement of your portfolio. Good luck with your investments and continue in gathering helpful information sources.

You will succeed if you’re willing to work hard and if you have enough capital investment.

Believe it or not, now is a great time to buy investment properties. Here are the reasons why investing in real estate are a great way to make money amid these trying times:

• According to market analysts and experts, now is the best time to buy investment properties as real estate prices are generally low because of the recent housing bubble and the ongoing economic crisis. If you engage in real estate investing today, you will be able to purchase as many investment properties as possible without straining your finances.

• Because of the country’s current financial troubles, there has been an increase in the number of motivated home sellers. As we all know, these home sellers can be a great source of affordable investment properties since they are willing to sell their houses at prices lower than the prevailing market price as long as you will help them get rid of their unwanted homes quickly.

• There is also an increase in the number of foreclosures and real estate owned properties or REOs. Because banks and other lending companies are having trouble accommodating all these properties, they are selling REOs at rock-bottom prices just to clear their inventories. This gives real estate investors the perfect opportunity to obtain inexpensive houses that they can fix and flip.

• By investing in real estate today, people can earn bigger capital gain once the United States fully recovers from the economic recession. Capital gain is the profit earned from investments that exceeds a capital asset’s purchase price. So if you purchase an investment property today at a very low price, you might be able to earn double the amount of money you spent on buying that house or more.

Real estate investing is indeed a great way to earn big profits despite the economic crisis. You should remember, however, that buying investment properties is not a “get rich quick” strategy. It requires hard work and dedication on your part.