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Musings on the market…. January 29, 2010

Posted by shaferfinancial in Finance, Uncategorized.
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Real estate values in my part of Florida has been level since March of 2009.  Foreclosures over the last couple of months have decreased [hopefully this is a trend].  Fairly remarkable since we have over 12% unemployment at this time!  Nationally, real estate has some more pain to go through.

The stock market is running out of steam.  Would not be surprised with a 10% drop.  However, corporate profits are coming in strong this earning season which should keep the market from a major drop at this time.  However, as I have often pointed out, the market runs on emotion so any short term predictions made should be taken as guesses only.

Berkshire is in the middle of a major run up.  The  catalyst is the inclusion in the S & P 500 index.  But every major analyst [including Warren himself] has stated that this stock is seriously undervalued.  Most feel the intrinsic value is somewhere between $125,000 and $140,000 for the “A”s.  Looks like the latest quarter will be another improved one with lots of cash flow.  The annual report will not be out for about a month; looking forward to reading it!

HCN and MMP have settled in the $42-45 range which is about right given their current dividend.  If they report better results and there appears room to increase dividends again then we might see some run up.

Have a great weekend!

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