What the experts say

Betting on industrial renewal

It’s still “no sure thing,” but American manufacturing could be turning the corner, said Ben Steverman in BusinessWeek. Investors seem to think so. Over the past three months, industrial stocks have outpaced the broader market by about six points. True, several earnings reports recently released by big industrial concerns were mixed; United Technologies Corp. posted better-than expected earnings while General Electric disappointed. But “there are a few reasons to be optimistic” going forward. For one thing, “manufacturing is jumping off a very low base.” Freight traffic—a good indicator of industrial activity—is up nearly 38 percent since March. Such growth should continue as companies “eventually” replace their inventories. Meanwhile, growth in demand, combined with a weak dollar, bode well for Caterpillar and other companies that “sell lots of products overseas.”

Gold: Don’t get dinged

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

With gold prices at record highs, many people are eager to trade their “forgotten bling” for cash, said Parija Kavilanz in CNNmoney.com. “But proceed with extreme caution.” Right now the gold market is flush with “fly-by-night buyers” who offer only a fraction of the metal’s true value. To get the most for your gold, research what it’s actually worth. For example, 14 karat gold should fetch about 50 percent to 60 percent of the price of pure gold. Ideally, you should sell to a local professional buyer. If you must go with an online buyer, check out the company with the Better Business Bureau, get a quote on the price, and make sure that it offers secure shipping. “Don’t put your gold in a mailbox.”

Hedging home prices

Homeowners who worry about declining home values can now buy themselves some peace of mind, said Bob Tedeschi in The New York Times. A new product called ­Equity Protection, from San Francisco’s Working Equity Inc., claims to be for the housing market what put options are for the stock market. Owners pay a one-time fee of 1 percent to 2.5 percent of their home’s current market value, and are then “essentially guaranteed that when they sell their home, they will not lose money because of a market downturn.” If you don’t expect to sell in the next few years, such a contract could protect you from an unpredictable market. “There’s a very strong scenario that says home prices will decline another 10 or 15 percent,” says Craig Focardi, an analyst with the Tower Group. In that case, paying now would save quite a bit later.