Land Ain't the Lone Ranger

[Red Steele]

not to get everybody alarmed over yesterdays wall street selloff, but it looks like some experts are calling for a 10% or even greater than 20% selloff in equities.

http://www.marketwatch.com/story/stock-trader-who-called-three-crashes-sees-20-collapse-2014-07-28

So midwest farmland isn't going to be the only investment that takes a major hit.

I'm a land buyer when the $12000 stuff comes back down to $4000....still have about a third of my portfolio in stocks, but I did harvest a good chunk of the gains a couple of weeks ago when the DOW first went through the 17000 mark. 

FIgure I will want the cash on hand to buy the $4000 dirt as interest rates will undoubtably click upwards to the point where borrowing to buy land won't work very well, even at a low level per acre.

History is like a song where the verses and singers may change, but the tune and refrain stays the same.

[sw363535]

I was looking back to see if you were looking back to see if I was looking back to see if you were looking back at me.

History repeats/

[kyu2852570]

That's laughable red that you will have the balls to buy land when it hits 4000. You will have an excuse not to buy then...if it gets that low and it could with big crops for a few years. Remember old wise one you are at a back seat to the other guys that sold their 13 crop for 6.50 and 14 for 5.00 -5.50. And there's some with 15 sold for 4.75+ most people have money in the stock market also so don't think you are the only one reaping those rewards while telling yourself that everyone is far too stupid to reach your level of intelligence

[sw363535]

Well, I will give you my stock market excuse.

 Land --- I have been conservative enough, and lucky enough to not get caught buying land at "embarassingly high" prices.  I think what I have invested in is built to show a profit for the future, and land does not at these prices.

But my small steady investment in the stock market got nervous and went back into agriculture when in the 90's the new computer tech boom took earnings to the 25-30% per year levels and the stock market companies tried to keep up by taking more risk.  Giving us issues like enron.  Then after the turn of the century the new investment companies with good growth had no assets and a short life expectancy coupled with no earnings. Many of the new investment stocks(like social media) are producing nothing and doing nothing.  The stock market looked so bad the funds started investing in commodities to show a profit.

How mixed up is that?????

I just got scared of the stock market.  We had an economy so in decline that farm land looked like a good investment (I think the whole farm land boom is tied to ethanol and the idea that commodities would be prifitable for a while----chasing government money. again.  

Yet our stock market has had some times of growth.  Or are we just changing the old formula's to make it look better.  Outside of ag the last 4 years, The american economy does not look healthy to me.  The only new jobs i have seen in our area has been government money driven.  Some, like wind energy may one day be positive economically, not sure about cellulostic ethanol (still being built for those who say there are no new ethanol plants coming on line).  Do we have an economy when there are no small businessmen left?

I have this feeling that most of the US economy since 2008 has been "just chasing that big pile of borrowed government money."