Is a Major Stock Market Correction Looming?

Three Great Real Estate Strategies to Profit No Matter What Happens!

With the Dow Jones industrial average reaching new highs almost daily, the stock market is in a frenzy. We're watching "one of the crazier moments in modern financial history," said Bill Fleckenstein in MoneyCentral.com.

The crazy highs were recently dampened when stock prices fell nearly 9 percent overnight in China on February 27, driving a market meltdown with skittish U.S. investors. That day, the Dow Jones closed down 416.02 or 3.3 percent at 12,216.24—its lowest close since Dec.1. And the S&P and NASDAQ each plunged more than 3 percent. Fred Dickson, chief market strategist for D.A. Davidson—the largest full-scale investment company based in the Northwest–referred to the tumble as a "natural adjustment" to high increases to stock prices. The pull back in prices, he added, was not a signal of an impending bear market.

However, former U.S. Federal Reserve Chairman Alan Greenspan has warned that the American economy might ease into recession by end of this year. He feels there are signs the current economic cycle is coming to an end. "When you get this far away from a recession, invariably, forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said in a recent Associated Press article. "For example, in the U.S., profit margins ... have begun to stabilize, which is an early sign we are in the later stages of a cycle."

The million-dollar question is: Is the stock market destined for a major correction? Some financial experts think so. For example, David Wyss, an economist with Standard & Poor's, told CNNMoney.com that the market is overdue for a significant correction. We couldn't agree more! Do you think the Dow could ever drop past 10,000, past 9,000 or even 8,000?

Innovative Real Estate Strategies the Ideal Solution

So what are your options if you're weary of your investments in the stock market and believe that a correction will take place because of the housing bubble, the actions of baby boomers, political climate, repercussions of the war in Iraq and other factors? You can avoid a major correction altogether by investing in innovative strategies in real estate. These strategies don't include a lot of hands-on effort like flipping, attending auctions and certainly not being a landlord. Moreover, they enable you to diversify your real estate investments, just as you did with your stock portfolio.

Consider the following stock example: If you were to purchase Google stock today for almost $400 a share, what would happen if, in one month, it dropped down to $300 a share? You would lose $100 per share. What would happen if I told you that you could purchase Google stock at a 15-percent discount at $340 a share today (an instant gain of $60 a share), but if it went down to $300, I would let you purchase the share at a 15-percent, re-adjusted purchase price of $255 one month later without incurring loses from your original purchase? And no matter how steep the drop in market, you would always have a 15-percent equity in your purchase of Google stock—yet still reap the benefits of any appreciation?

Well, this strategy actually exists in real estate, and it's called a "preconstruction syndicate". It's what smart investors are doing, and it leverages what investment groups provide: buying power. A preconstruction syndicate is just one of three PropertyVestors strategies that you should consider in order to avoid a 1987-like correction to your stock assets.

Prosper with Smart Strategies from PropertyVestors

PropertyVestors is an investment group of CEO's, entrepreneurs and savvy real estate investors that are taking active steps to protect themselves against a market correction by creating a diversified real estate portfolio. Investors are able to apply diversity in real estate geographically and by asset class through its various investment strategies and types of inventory.

Furthermore, PropertyVestors enables investors to capitalize on different market conditions. The strategies that its real estate portfolio specialists discuss are low-risk, private lending options; moderate risk with preconstruction syndication; and high risk with direct preconstruction purchases in emerging markets such as the coastal regions and lakes on the Carolinas.

With PropertyVestors, you can take advantage of a new model and innovative real estate strategies. You can be protected from a downturn market, whether it is a substantial correction or any other trouble that may be brewing on the economic horizon. The fact of the matter is: Americans are in debt. They're living in houses bought with interest-only loans, adjustable-rate mortgages and other creative financing that can strangle them financially if rates increase (and they likely will). PropertyVestors' real estate strategies can position you to take advantage of these and other market conditions. Not only that, it can help you maximize your profits while minimizing your risks.

To learn more about this topic, visit www.propertyvestors.com, sign up with the investment group by becoming a Premier Member for $245.25 annually and receive the eBook: "Capitalizing on Real Estate in Today's Economy." For general information about PropertyVestors or its offerings, email invest@propertyvestors.com or call 1-877-90-BUYER.

About The Author..

Sarah Barry is the Founder of PropertyVestors (www.propertyvestors.com). PropertyVestors is a successful real estate investment group that creates above-market returns at below-market risk. Access to PropertyVestors' three smart real estate strategies enables investors to achieve double to triple digit returns on their real estate investments.