Article Source How did we get into this mess, and how do we get out of it? First, a little background: Both Freddie and Fannie were initially created by the U.S. Congress with the goal of expanding the residential mortgage market. They are for this reason referred to as "government-sponsored enterprises", or GSEs, even though both eventually were converted into private companies for which there is today no explicit government guarantee of their debt.... After a homeowner has borrowed money to buy a home, the original lender likely resold that loan to Fannie or Freddie. The GSE in turn collected some of those mortgages in a pool which was sold in the form of mortgage-backed securities (MBS) to private investors, for which the GSEs collect a fee in exchange for guaranteeing payment on the MBS. Other mortgages purchased by the GSE are held directly by the GSE for its own investment ...

Real estate investing is not nearly as complicated, financially burdensome, or time consuming as you might think. In fact, Its easy to add raw land, shopping centers, apartment complexes, and private homes to your portfolio without brokers, bankers, attorneys, and handymen on your payroll. Even better, the zero overhead approach allows you to blend your real estate investments into your securities portfolio for ease of management, income monitoring, diversification, and analysis.

I know you think that the entire real estate market is in a shambles, and that it is far too dangerous to get involved now, what with all the nasty uncertainty that has decimated property values. But where did the real damage take place, and why? Without having mega millions to work with, or a line of credit that goes around the block, you can have positions in various forms of Real

…

Neither wealth nor the size of an investment portfolio mitigates the effects of inflation. The poor feel the deleterious effects sooner, but uncontrollable growths in operating expenses can cripple even giant corporations.

The stock market is an empowering means of maintaining real values of cash inflows. This investment route is egalitarian. It also allows an additive approach. Some of today’s most influential investors have made modest entries into a stock exchange not so long ago. The system of ADRs allows U.S. investors to buy stocks from countries where inflation may be lower than at home.

Four stock strategies can keep investors ahead of inflation:

1. Let the dividend track records guide stock picks. When did the corporation last skip a dividend? Does the past Return on Average Equity exceed the forecast rate of inflation? 2. Which stock has a Beta of around one? Does it belong to an industry with superior prospects in an inflationary

...