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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Beachside Bill who wrote (59064)8/3/2006 7:19:38 PM
From: tdl4138Read Replies (1) of 306849
 
In this environment I don't see any sector to "buy". Period.

My opinion, for whatever its worth is that this "market" is in transition...from Bull to Bear. Slowing economy, much slower that Govt. #'s....and a consumer that was tapped out 6 mths ago and was to stupid to know it. I'm not a "doom and gloomer" but a realist. Sometimes its just not appropriate to "invest" in the market. Not until the dust settles from the storm and I believe we've created one hell of a storm.

I understand your thoughts on the HB's...but a short squeeze is not sustainable...at least not for more than a few weeks. Sooner or later the "money" will walk the same stocks back down. You can't keep denying the fundamentals....and real estate is more than overdone in any form.

Earnings drive the stock markets. Everything else is simply noise. Catching a trend and following the money is, in reality what we are all trying to do whether long or short. In a slowing economy....or recession I don't see any sector worth trading that will have sustainable earnings.

Parking cash until a clear opportunity appears may be the prudent choice at this time. Too often the concept of capital preservation is forgotten until its too late.
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