You’ve probably heard about the new HBO series “Silicon Valley”, based here in my beloved Palo Alto. I took a look at it last night. They pretty much got it right. Don’t have an HBO subscription? No problem! You’re a Sloper! Here’s the first episode:
Well, the small number of properties available in my little town continue their ceaseless ascent in value, and I’ve got another one picked out just for you: 435 Coleman, in lovely Old Palo Alto. Here’s the street view, courtesy of Google Maps…..
Financial Engines, which is based right here in lovely Palo Alto, is continuing to poop its Pampers. As I’ve said repeatedly, and here most recently, I think it’s heading to the low 30s. Bombs away!
There are bubbles everywhere, and just about the only one indirectly benefiting me is the one in Palo Alto residential real estate. I bought my house in 1991 for about 15% of its current value, and the market could utterly crash around here and I wouldn’t feel a thing. The people paying five, six, or seven million dollars for a house (not a mansion………a house) could be deeply regretting their decision down the road. (more…)
As I’ve said ad nauseum, interest rates accelerating higher could be the defining theme of 2014. Since bottoming in July 2012, the ten-year T-note rate represented by symbol $TNX has more than doubled. Freakishly, real estate seems to be merrily hopping along, as if 2008 never happened. I can report to you from my pleasant town that I wish I had some way to buy puts on Palo Alto real estate, because it’s insane (again). In any event, the bonds, represented by symbol TLT below, continue to crumble away, and I remain short. (more…)
