Money Update - Show today at NOON PST . Update on stocks, markets, cars, real estate and more! READ September 3, 2014

Money Matters airs today at NOON Pacific Standard Time at www.kvmr.org

or tune in live!

Marc's notes:

Analyst after analyst is calling for either a continuing run or a market fall. A few analysts on CNBC yesterday called for a pretty hefty fall. Although the market is stagnant right at this time, I don’t think a major fall is in our near future. The Feds just won’t allow it.

I do think reality will set in eventually. What I mean by that is the markets will always reflect reality eventually but the day to day movements are only the sum of the thoughts of all the players in it each day and right now the amount of bears and bulls are not at extremes in either case to make a case for a falling market. The buy and hold crowd is still happy but the reality is the markets should really be tanking if it was not for the Feds easy money policy and ultra-low interest rates.

Although they (The US) are scaling back on the QE (money printing programs) they are still doing billions each month and ultra-low rates are still where they have been for several years now which are near zero. These near zero rates force investors to look for returns and that is found in the stock market.

An interesting side note is the Euro zone is suffering so the Euro Central Bank is and will use the QE tool as it has been. I expect with the Euro zone faltering badly now another round of QE will be initiated by them soon which will probably send the markets soaring.

Remember this is a worldwide stage and even though our Fed is tapering (cutting back the QE) the Euro bank is increasing it so in the grand scheme of a global stage, the Euro bank is making up what we cut. Only when ALL the central banks cut or taper QE will the markets revert back down reflecting the reality that business is just not that great if you take away the QE and the ultra-low rates. Since the governments of the world believe QE and ultra-low rates are the magic elixir however, they will not cut QE and raise rates in concert with each other if they do it all, especially if markets or economies falter.

So I still believe UP is the direction we go and if we do correct, an announcement of new QE or a halt to the taper will reverse the markets.

Conflicting signs are just that: conflicting. Margin debt is high (bad) and insiders are selling (bad) but bears and bull analysts are mixed at best (good). There is a ton of money still on the sidelines (good) and many mom and pop investors are not in the market (good). QE is still underway (good) and interest rates are still low (good).

The “yield curve” is not inverted but in a normal upward slope (good) and yes that one is more complicated to understand. The bond market is still not flashing orange or red (good) and the Federal Reserve is still saying it is watching the markets and the economies and that they will tailor their programs accordingly (good).

BTW, when I say “good” I mean for the markets, not for our long term economic health however.

Gold is still in the doldrums and I still think we have not yet seen the bottom but recent strength has tempered my belief on that somewhat.

My opinion therefore is as it has been for about 3 to 4 years now. Green light for stocks up to 15- 25% of your money but only large cap dividend payers of companies whose products you use every day. (For a list order up my Super Dividend Payers List and look at the first 30 companies or so).

Real estate is slowing and I would stay away from rentals that don’t net an 8 % return.

Land however is still a good buy for those who don’t need income and just want to speculate. I own a lot in an exclusive gated community and the only other lot available there just sold and someone is building a house. Lots are dirt cheap but only if you make offers 50 or 60% off asking price and the lots must have some exclusive feature. Don’t just buy any lot; there is just too much supply. (Need help negotiating or finding a good deal? Email me).

Other interesting news:
My free solar system just got turned on today and in one hour I have generated 3.5 Kwh so yippee! If you want a free solar system it’s easy, just email me and I will have the company call you or email you. It’s a great program! Your power bills should be over $150/mo at least otherwise they won’t give you one but you high power burners, get on this great program before it disappears.

By the way my report “Get stocks on sale or get paid NOT to buy them” is on my website for purchase. I am including a class or one on one tutorial with you at your home for FREE with the purchase. If you want to see the strategy in action, just follow me on Twitter under marccuniberti. I use real money with an account that I started in January 2014 with 200k. Today it sits at $321K. I post every trade, every loss and every gain and you can track it all the way back by viewing my old tweets to verify it. Follow me and check it out then get the report and let’s get making some money! Phone instruction is also available if you live far away. Follow me and see for yourself!

Want to buy a new car? With rates in the dirt and them giving away car loans, it’s not that bad of a time to buy one. Although I think car prices are too high, interest rates are low so here is an article on how to get the best deal. (I myself buy cars one year old so I don’t get hit on the depreciation you get when you drive off the lot).

Tune in tomorrow at noon!

Marc

Want to buy a new car? You’re not alone. New car sales are booming and to get a truly good deal, you must know how the car dealers work.

I don’t know of anyone who didn’t think they got a good deal on their purchase of a new car and it’s a strategy of dealers to convince you that your deal is the best deal.

Don’t you believe it.

Tricks like paying $100 bucks over invoice or a special holiday sale is all smoke and mirrors.

Ever notice how once a special onetime sale is over another one takes its place?

And how could any car dealer survive on a profit of $100 dollars over invoice?

The truth is they can’t, and they’re making thousands on each and every car they sell despite that “invoice cost” they love to tout.

They do the proverbial “start high” on the asking price and depending on how pushy you are, they go down from there. If you’re not very pushy, they make even more, but even you tough-negotiator types are probably paying way more than you should.

I know how car sales work because I put myself through school selling cars.

How do you get the best deal and buy that car at the lowest possible price?

Over the years I have found getting the lowest price is easy if you’re willing to spend a few hours sending out some emails and putting up with some pushy sales people using age old tactics.

First off, don’t ever go into a dealer ready to buy unless you know exactly what model and extras you want and the exact price you will be paying. You do that by identifying the car you want down to the very last detail, then sending multiple emails to at least half a dozen dealers.  You may have to email dealers an hour’s drive away from you or more but don’t worry; it’s all part of the process.

Email the internet sales manager only. Ask him by email for his best “out the door” price with all destination fees, taxes, prep fees and all. Many dealers will try and hide a fee until you show up to buy the car so make sure you get your price as OUT THE DOOR and in writing.

Many will ask you to come in person to discuss your deal or to negotiate the best possible price .

Don’t  you do it. Persist with emails only and push until you get firm quotes for an OUT THE DOOR PRICE.

Then shop one against the other (dealers hate this as it pushes down the price to the absolute lowest) until the dealers bow out one at a time. You will find a lot of flakey dealers not being responsive or trying to get you to come down and visit but hold fast.

It may take days, even weeks of hammering but eventually you will start to notice just how low in price they will go. Continue to shop one price against the other multiple times back and forth between dealers. Many will get mad and disappear but the truly hungry ones and the ones with integrity will make themselves known. You won’t make any friends doing this. In fact you will only have one friend at the conclusion. The one you buy the car from.

Stick to it and be persistent. Be resolute in your task and shop prices until they won’t go any lower. You can even email the remaining dealers that you are buying a car that day and ask them to go away. You will get even lower prices after that email.

And stay away from any added extras when you pick up the car like the special “paint sealant” (not worth it) or extended warranties. If you want any of those, know that going in and get those in your out the door price BEFORE you go.

In the end you will save many frustrating trips, gas money and thousands on your car, and if you are like me, have a little fun in the process.

This article expresses the opinions of Marc Cuniberti. Mr. Cuniberti hosts “Money Matters” on KVMR FM 89.5 and 105.1 FM on Thursdays at noon and syndicated on over 30 radio stations throughout the US. He has been featured on NBC and ABC television and on a host of made for TV documentaries for his economic insights. His website is www.moneymanagementradio.com