Factors At Work
Factors At Work:
-Typically the third year in the presidential cycle has been the best year for the market. There has not been a down year since World War 2.
-Nothing has predicted the direction of the market as well as the CBOE put-call ratio.
-The home price growth charts give the clearest picture of how awful things have gotten.
- According to the WSJ 26.9% of CEO’s say business has been affected by credit crunch. 30.5% are delaying/reducing capital spending.
-So much money is being pumped into the system at the expense of the already weak US Dollar.
What now?
The real estate market is in correction mode. Many individuals who own property are unable to sell at a price acceptable to them. Just like investors in the stock market people are refusing to accept they bought a top and sell a losing investment.
The stock market has become an individual stock pickers game. Any fund managers buying Lennar and Countrywide in June should consider a new profession. (And may have to..) For those of you who like to take an index fund/hands-off approach it may be time to consider handing it off to a professional.
Look for multinationals based in the U.S. who do a lot of business overseas for strength over the next couple quarters. They will benefit from the valuation of the US dollar.
-Typically the third year in the presidential cycle has been the best year for the market. There has not been a down year since World War 2.
-Nothing has predicted the direction of the market as well as the CBOE put-call ratio.
-The home price growth charts give the clearest picture of how awful things have gotten.
- According to the WSJ 26.9% of CEO’s say business has been affected by credit crunch. 30.5% are delaying/reducing capital spending.
-So much money is being pumped into the system at the expense of the already weak US Dollar.
What now?
The real estate market is in correction mode. Many individuals who own property are unable to sell at a price acceptable to them. Just like investors in the stock market people are refusing to accept they bought a top and sell a losing investment.
The stock market has become an individual stock pickers game. Any fund managers buying Lennar and Countrywide in June should consider a new profession. (And may have to..) For those of you who like to take an index fund/hands-off approach it may be time to consider handing it off to a professional.
Look for multinationals based in the U.S. who do a lot of business overseas for strength over the next couple quarters. They will benefit from the valuation of the US dollar.
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