Intrinsic Value

Owning A House Isn’t Necessarily Smart

Yesterday’s S&P Case Shiller May report showed home prices across 20 major U.S. metro areas were up 0.6% since April, the second straight monthly gain after seven straight months of decline. But prices are down 4.5% since last May, and prices are down 32.3% from June/July 2006 to May 2011. Case Shiller Index co-creator and

Home Price TABLE: Is U.S. overvalued or undervalued?

The Economist had a good property special section last week, and it’s best summed up by this piece and also the table below showing which global housing markets are overvalued, undervalued, or fair value. The U.S. is categorized in three value measures and the Case Shiller National Index is the broadest data set. And if

Return on Stocks vs. San Francisco Property: Jan 2000 to Oct 2009

Someone sent the graph below comparing stock indices to San Francisco Real Estate form 2000 to present. Obviously there are a lot of assumptions here and this cannot dictate any individual’s property investment decision, but worthy of debate. One of The Basis Point’s investment management contributors had this to say about it: Makes me want

In Defense of Hedge Fund of Funds

Both the direct hedge fund industry and the fund-of-fund industry have been under significant scrutiny in recent weeks and months. The Bernard Madoff scandal was clearly the most high profile event that has drawn this negative attention. In addition, David Swensen, the highly regarded Yale endowment fund manager recently expressed a harsh view of the

Four Fundamental Risks In Global Financial Markets

Global financial markets are essentially mechanisms for buying, selling and transferring risks. When we break these risks all down to their roots, I would argue that there really exist only four actual fundamental risks that are being bought, sold and otherwise transferred. They are: (1) Enterprise credit risk: the risk that an organization won’t be

Catastrophe Schmatastrophe: Hedge Fund Demise Overblown

Nothing aggravates and annoys me quite as much as journalists, investors, or anyone else for that matter, taking a short term view of things and predicting catastrophe (oh, and the British of course). The world (outside of Britain that is) is a pretty elastic and adaptive place. Things happen for a reason, people adapt and