Nevada Second Mortgage
Las Vegas Valley home sales are drying up
Rising mortgage rates, reduced sales and increased foreclosures are forcing Las Vegas Valley home builders to revise earnings forecasts. Pulte Homes, for example, recently reported a 20 percent drop in profits for the second quarter as well as 29 percent fewer new orders. Pulte Homes is the fourth largest builder in Southern Nevada, recording 1,891 new home closings in 2005. The company last month cut its forecast and said second-quarter profits would be 85 cents to 95 cents a share, down from its previous forecast of $1 to $1.10."After several years of limited house inventory and robust demand, the supply of homes for sale continues to increase, while greater buyer uncertainty about purchasing a home at this time is being further impacted by their inability to sell existing homes and the effect higher prices and interest rates are having on overall affordability," said Richard J.
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Managing booms and busts in today's portfolio
Dr. Richard Marston is the director of the Weiss Center for International Financial Research and director of the Institute of Private Investors Program at the Wharton School of the University of Pennsylvania, where he is also a member of the faculty.
Marston outlined his thoughts in a recent report, "Managing Booms & Busts in Today's Portfolios."
I have provided some of his thoughts:
Many investors have seen a solid three years of economic rebound with some markets soaring beyond the most optimistic expectations. It's times like these that wise investors re-evaluate their portfolios by addressing the following questions.
• What are the potential effects of a booming market on a portfolio?
• How can investors control risks in their portfolios?
• What examples of booms and busts from the past can we look to for guidance?
For three straight years, the strong economy has proven its results month after month, quarter after quarter.