Tuesday, August 4, 2009

Wednesdays with Lou

Invest, Invest, Invest…

If you can now is the time to invest in equities/mutual funds. The Dow Jones closed yesterday at 9,320. In my Blog Post from June 9th I noted the Dow Jones reached its lowest point since January 1997 with 6,627 points on March 6, 2009. Since then the market is up 40.6%. If you had $1,000 invested in March you could potentially have $1,400 now without having done anything. If you have a 401k you should take the time to look at your investment strategy. It’s my opinion regardless of age you should move into equities. There is no way to make up the losses that were most likely suffered over the last year without being aggressive.

I don’t know when the economy will fully recover but generally speaking the stock market is a leading indicator. The market leads the economy by 6-12 months. Since the market reached its low point in March 09 things should hopefully start to turn around between October 09 and March 2010. That used to be the norm but last year was unlike many years we’ve ever seen and our Government is now intervening more than ever.

At least in our area home values have plummeted. Most of the homes sold within the last 2 years are significantly discounted from what the homes were valued at 3 or even 4 years ago. How quickly will our homes regain their value? You can expect the value of your home to be based on the most recent sale of your neighbor’s home assuming they are of relative size. Most of the homes sold today are being sold for up to 25% less than they were worth 3 or 4 years ago. If you’re not planning on moving anytime soon great but forget about refinancing since the value you thought you had in your home is most likely gone once an appraisal is done. From an investment standpoint, now is also a great time to by a home as they are likely valued at the lowest point and the government is giving you a significant tax credit for first time homebuyers.

TV Shows

Man vs. Food

This show is amazing. If you haven’t seen the show it’s on the Travel Channel. The new season premiers Wednesdays at 10:00. They had a marathon this last weekend so we set our DVR up to catch a few shows. Our favorite episode so far was when they went to Columbus to visit Thurman’s Cafe http://www.thethurmancafe.com/. Brooke and I have gone there with her family several times and have never been unsatisfied with our meals or experience. The host of the show, Adam Richman, travels to different cities and visits 2 or 3 local eateries that are known for serving generous portions. He picks one place to take on a challenge, MAN vs. FOOD. Adam has taken on 5 lb burgers, 3 pound sandwiches, giant pizza’s, enormous 12 egg omelets, mountains of pancakes, and 18 chili dogs. It’s a great show I highly recommend it.

Big Brother

Two weeks ago I gave a spoiler about Casey and Jessie knowing each other and being in a secret alliance and that the house was against Ronnie. Sure enough the day after my post Jessie burns his alliance with Casey and Casey goes home. I know I’ve lost credibility with you but this year even with the 24/7 feeds I can’t figure out where everyone’s heads are at. I have a strong feeling Russ is with Jeff and Jordan and no longer with the NBK. I see Kevin and Lydia going with whoever has power. I’m thinking Michelle is with Russ, Jordan, and Jeff but this year is tricky.

Running Update: Since June 11th I’ve ran 118.45 miles and can now run sub 8 minute miles for a 4 mile stretch.