August 9th, 2011
Stock Market Uncertainty – What to Invest In? How About Windows?
What is going on in the economy? Double Dip recession? It’s nearly sure to happen if the press keeps talking about it! When you learn to ride a motorcycle, they teach you that that on difficult turns, look to where you want to go and that is where you will go! Why can’t we teach the media this trick! If we report on nothing buy gloom and doom, then we are sure to create more of it! It’s no wonder the Stock Market fell 635 points yesterday after the media plastered the recent S&P downgrading of the government’s credit standing all over the news. Never mind that both Moody’s and Fitch have not decided to downgrade the government at this time …. the big story is that S&P did so!
So after listening to all of the negativity on the news last evening, I decided that I was not going to bed until I located and absorbed a positive story in the news. After some time, I finally located a story in section D6 of the newspaper, “USA Relying Less on Foreign Oil since 2005 Peak.” I read it twice! Did you know that the USA’s net petroleum imports were down to 49.3 percent in 2010 from a peak of 60.3 percent in 2005? This is a complete and welcome reversal of past trends! The situation has been changing dramatically because of the increasing availability of bio-fuels and natural gas reserves found in shale formations. Also, US oil production, also locked in shale formations, is also starting to grow!
Ok, back to the news. So, the big question is this: If stocks are falling, what do we do with our cash? Gold? How high can it go? Some financial analysts are suggesting that people will just sit on their cash. There is even talk of people stuffing cash in their mattress or burying it the backyard. It sounds silly, but some people will do it!
So, if I was a window dealer, I would now be out there professing what a great investment new energy-efficient windows represent! They will save you energy in the years ahead. If you choose the right ones, they could possibly last the lifetime of your home. They will increase the value of your home so that when home values recover, your home will be worth even more! Some even offer transferable warranties which could really be a selling point when it comes time to sell.
Also, great news for window dealers and consumers alike – new finance programs are being introduced to the door and window market such as “Same As Cash” programs with FICO score requirements as low as 600. These programs offer an interest free grace period of up to 6 months after which they convert to a loan at fairly decent market rates. So, with a viable Same as Cash Program in their arsenal, door and window dealers can pitch a program that “pays the homeowner” for investing. “Save Your Cash for 6 months and stick it in a safe investment!”…the operative word of course being safe!
Replacing old windows with new energy-efficient windows will give homeowners (or let’s call them investors) a positive return on their investment! They will also be investing in the future prosperity of our nation by collectively reducing the amount of fossil fuels that our nation consumes to heat and cool our homes. This affects the overall supply/demand equation for energy consumptions and helps to further reduce our dependency upon foreign fuels supplies.
Now that’s a great investment for one and for all!