Hepplewhite Side Cabinet
When the federal funds rate started to drop, and struck new lows in 2003, we were well into a strong and healthy stock market recovery. The federal funds rate stayed around 1% long enough to set off a boom in low-cost mortgages and in home prices. Home buyers soon discovered that their ordinary paychecks could now buy fabulous homes. People with cash in savings learned their money earned next to nothing.
Interest rates on home mortgages dropped so fast that the National Association of Realtors' housing affordability index showed that almost anyone could buy a house somewhere in America, because borrowed money was practically free.
It's no wonder that home prices soared. According to the Office of Federal Housing Enterprise Oversight, the national index of home values rose 46.9% in the five years ending Sept. 30, 2007. That was a staggering annualized appreciation rate of 8% -- enough to make us all think that owning a home was way better than the stock market or just about anything else you could roll the dice on.
Some investors thought that they wouldn't have to actually work for a living anymore.
It's all changed now. Where would you trust your money in today's economy?
Metals, precious gems, baseball cards, beanie babies, Hepplewhite, antique cars, comic books, real estate, stamp collecting,...?
The cabinet's worth a bundle.