Investment Advice

American Markets

GE is a good stock for the long term. I expect it's price to go down due to Democrats in congress voting to repel some of the large loopholes in corporate tax laws which GE has benefited in billions from. Their appliance division will also cool off in the foreseeable future from the real estate bubble bursting. However, I believe GE's long term viability is very secure. Their work with the AEP which also works with the Futuregen project for building cleaner coal burning gasification power plants, among other environmentally friendly policies will help its selling power. It is in my opinion that, environmentally friendly technologies, companies and products will be trendy in the next few years. It will be so trendy in fact that the marketing possibilities alone will make companies that are already at least trying to clean up their image sell better.

The Auto industry

The question of the automakers GM and Ford can be simply summed up with the following: unless they get on the band-wagon and improve emission standards and make cars that are more or less like the kind in the European and Asian markets they will be in for even larger losses than what they have already incurred. Like I said, it is going to be trendy to be environmentally friendly in the next few years and has already begun.

Real Estate & Bond Market

Raising interest rates over the next few years will slow down the housing market, furthermore, the raising interest rates will bury families that opted for a floating mortgage. The bond market will also go down from slowly raising interest rates. However, I believe that the real estate market is always a safe bet, as people always need a place to live and there are always more people. It can only go up in the end. And of course, local factors play a larger key role in real estate value, especially in developing, trendy locations. The only trick is to find out which areas will become trendy which are now very affordable.