Easy Come, Easy Go
Here is a CNNMoney.com article about millionaire households in America:
According to a report by TNS Financial Services, there were around 8.9MM millionaire households in America in 2005, or almost 8% of the roughly 114 million households in America, up from 8.2MM in 2004, and 6.2MM in 2003 (2003 & 2004 numbers).
The definition for "millionaire household" was "net worth, excluding principal residence", but the article goes on to say that "[a]lthough real estate is not their sole source of wealth, it remains a staple for many. Forty-six percent of those surveyed own investment real estate like a second home or rental properties," and fewer than 20% own "in whole or part a professional practice or privately held business", which might hold its value while asset prices decline.
Of the top five counties in the U.S. with regard to millionaire households, three were Los Angeles, Orange, and San Diego Counties in CA, and another was Maricopa County, AZ - greater Metro Phoenix area - plus at no. nine was Palm Beach County, FL - all real estate bubble epicenters.
Integrate all that info, and my guess is that by 2010, we'll be back to having 6MM millionaire households in America.
According to a report by TNS Financial Services, there were around 8.9MM millionaire households in America in 2005, or almost 8% of the roughly 114 million households in America, up from 8.2MM in 2004, and 6.2MM in 2003 (2003 & 2004 numbers).
The definition for "millionaire household" was "net worth, excluding principal residence", but the article goes on to say that "[a]lthough real estate is not their sole source of wealth, it remains a staple for many. Forty-six percent of those surveyed own investment real estate like a second home or rental properties," and fewer than 20% own "in whole or part a professional practice or privately held business", which might hold its value while asset prices decline.
Of the top five counties in the U.S. with regard to millionaire households, three were Los Angeles, Orange, and San Diego Counties in CA, and another was Maricopa County, AZ - greater Metro Phoenix area - plus at no. nine was Palm Beach County, FL - all real estate bubble epicenters.
Integrate all that info, and my guess is that by 2010, we'll be back to having 6MM millionaire households in America.
posted by Oroborous at 12:26 PM
16 Comments:
I hope one of them will the Oro's.
Ha! As if.
But thanks for the good wishes.
I suspect that those locales are real-estate bubble "epicenters" because millionaires want to live there as opposed to the other way around.
Keep thinking happy thoughts.
Although it's true that SoCal and So. Florida are beautiful places. But Phoenix as a national magnet for millionaires ?
Phoenix tempts Lileks
Yes, Phoenix tempts a lot of millionaires, but it also tempts a lot of speculators. The house that we bought in Surprise, Az two years ago was bought from actor Patrick Duffy, who was flipping properties.
oroborous wrote: "Keep thinking happy thoughts."
Of course. What's the point of being all gloomy and doomy?
duck wrote: "Phoenix tempts a lot of millionaires, but it also tempts a lot of speculators."
The fact that it tempts the millionaires is what tempts the speculators. How else would the speculators make money if there weren't millionaires to buy from them at a higher price?
Wannabe millionaires.
Joel Kotkin is also persuaded by Phoenix. And She who Must Be Obeyed and I met there, so there's got to be some sort of harmonic convergence going on.
Speaking of millionaires, any of you guys got any stock tips.
I have a friend whose husband died last year. He was very successful with his portfolio. Now she has substantial dividends piling up and doesn't know where to put it.
If you don't know what to pick, you should be in index funds. SP500, Nasdaq, Wilshire 5000. That's especially true if she's already got a good portfolio because she can ride out even long term downturns.
Since I think that there's a recession and bear market on the way, my advice would be to let the dividends pile up, and wait for the economy to start recovering in the future.
But if she wants to be fully invested, since the dollar is dropping against the Euro, a European gov't bond fund might be a good play - you get safety, interest, plus currency appreciation.
Betting against the dollar is a smart move.
"Betting against the dollar is a smart move."
If it's a smart move, why not actually do it? It's cheap to set up a futures account and then you can go long the Euro or the Yen. Bet away! Make millions! Become the next George Soros! Good luck!
Sorry, I just realized that I hadn't proof read this.
Betting AGAINST the dollar ISN'T a smart move.
... and I wouldn't do it even if I made billions.
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