The market has been fairly impressive since March on the hopes of favorable corporate profits and the "perception" that we've turned the corner on this recession.
It's hard for me to buy this notion given the fact the unemployment figures are rough along with other conflicting reports which suggest the road ahead remains bumpy. Maybe the blood remains and returns to the streets.
The real estate market remains very strong driven by low interest rates, although lately we've seen a bump up the past week or so on the rates. It'll be interesting to see if this strong pace continues through the summer, and it could very well happen. I have seen reports of shrinking inventory not only in my neck of the woods, but from other areas as well. However, if the rates continue to climb, it'll have a cooling effect at minimum. After all, how many months of record sales can we have before the market takes a subdued rest? Yes, maybe investors feel the housing market is a safer haven, immigrants are buying, first time home buyers are feeling a damned if you do/don't situation, step up/down homesellers...How long can this last before we take, at minimum a breather? As we know, nothing goes straight up.
Reports of home selling prices have continued to increase. Sellers are becoming more realistic and sensitive to pricing homes based on what the market will bear as opposed to what the seller wants. On the whole, asking prices have come down or at least stabilized even though selling prices are up.
How many times can we refinance debt so we can go to the malls to shop, maybe buy a car or visit Home Depot for the remodel? Has the refi boom helped profitability overall? The borrower sees an improvement in cash flow even though overall debt rises. So that's good, isn't it?
So help me out understanding the stock market here. Are we ready for a breather? Are the shorts somewhat baffled? Do we cool awhile and resume a pace to what appears to be a move back to 2000 range on the nasdy? Do corporate profits appear to be better than what they are because year over year comparisons are reflective of movements based on trimming the fat?
It's been an incredible move although a far cry from our days of pre 2000...
Hey you, Sue....!!!! |
