Long Shot: Pull Up This Cash-Rich Chair
Real Money's Long Shot column is dedicated to trading ideas that are highly risky, but which present an opportunity for significant payoff if they work. Such ideas are sometimes characterized as "lottery tickets" and are for only the most risk-tolerant investors, as the potential for 100% loss is high.
For months now, trickles of data have been suggesting that housing prices are stabilizing and buying activity is picking up. As far as I can see, there is really one singular piece of data that matters most: The cost of renting vs. that of owning. The strong preference to rent over the past several years came due to rental prices that were significantly lower than the cost of ownership. That dynamic is changing as a strong rental market has reinvigorated the attractiveness of home ownership. Anecdotally, just yesterday, a hospital-lab-worker friend who just moved back to Atlanta said she decided to buy a house because it was cheaper than renting one....507 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.