Island dynamics/bad economy

Maybe so. The key to financial stability is diversification. However it is rare to find a diversification strategy that didn't include a significant share of stocks or mutual funds. Additional investment instruments like real estate and some commodities have been just as impacted as stock prices. Risk-free investments can barely keep pace with inflation. I don't know of many (any?) people with diverse holdings who haven't felt adverse impacts in their holdings. Smart ones invested in less risky holdings and keep a long-term investment horizon in mind.

At this point there's not a lot of obvious choices for investors except certain corporate bonds. Gold is near peak prices, oil is oddly low - I think a lot of speculators were driven out of the market lowering asset beta values here, real estate is still speculative as nobody knows whether we face a short-term recovery or a 10-year horizon as Japan recently came out of, etc.

I'd say put your money in a mattress but at the rate the government is going to tax and spend to get us out of a depression I think it's going to be seriously devalued in a mattress as well...

Very few investments have not been affected by the downturn of the stock market. Many high-end investors wish they only have had loses of 30%.

Hello everybody! Dengue does have its benefits. At least I have time to catch up of all the opions and perspectives. As I believe I would qualify to refinance my home for a a lower interest rate, does anyone know that the points are to do just that? I do not want to spend a ton of money just to have lower monthly payments. My thinking: With lower payments, if I pay the same amount I do not each month, I will gain equity much faster and kill the loan perhaps within ten years.

Just a questions for brains better than mine,

thank you all. This is such a great board,

Dan

Danieljude,
Ask your current lender if they will "recast your mortgage," You will not get any additional money, they (the Lender) can lower the interest payments and reduce it to less years left to pay. Example your original loan was for 30yrs at 8% and you have been paying it for 7 Years, the amount was $100,000. The Loan Balance today is 87,000. you can recast that amount 87,000) with the current lender for maybe 5% at 15 years the monthly payment might be the same but you reduced the number of years left to pay off.