Tags: Stein | buy | homes | stocks

Ben Stein: Buy Homes, Not Stocks

Wednesday, 04 Apr 2012 07:51 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Homes represent a much better bargain than stocks at this point, says financial commentator Ben Stein, a Newsmax contributor.

“The thing to buy now is homes,” he tells Yahoo. “They’re really, really cheap. This market just begs to be bought.”

U.S. home prices fell 0.8 percent in January to the lowest level since early 2003, according to the S&P/Case-Shiller 20-city composite index.

Editor's Note:  How to Pay Zero Taxes . . . Legally

Stocks, meanwhile, have been on a tear, making them overpriced, Stein says.

"We have had an astounding rally. If you think of the rally from early March 2009 until now, it is just breathtaking.”

The Standard & Poor’s 500 Index has soared 117 percent from its March 2009 low.

"This market is discounting a very substantial [economic] recovery,” Stein says. “Unfortunately the recovery doesn't seem to be here yet, and markets are very far from being perfect predictors. At this point, I would not be confident buying a lot of stock at these levels.”

While the economy expanded 3 percent in the fourth quarter, many expect that pace to slow down. The UCLA Anderson forecast pegs first-quarter growth at 2 percent.

The time to buy stocks is when prices are at “abnormal lows,” Stein says.

Many experts, like Stein, anticipate at least a correction for stock prices. “We just got a little bit ahead of ourselves right now,” Jason Cooper, a money manager at First Source Investment Advisors, tells Bloomberg.

“Some of the data points aren’t all that positive.”

Editor's Note:  How to Pay Zero Taxes . . . Legally



© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved