Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

real estate market

About That 500% Jump in Interest Rates…

By | September 22, 2014

Economy and Stock Market Handle a Five-Fold Jump in RatesThe verdict is in…

Last week, at the end of its regularly scheduled meeting, the Federal Reserve said:

1)      It would continue to reduce the amount of money it creates each month. The Fed said it will be out of the money printing business by the end of this year. By that time, the Federal Reserve will have created more than $4.0 trillion new American dollars (out of thin air)…. Read More

The Sobering Issue

By | July 25, 2014

Why Our National Debt Will Double From HereAccording to the U.S. Congressional Budget Office, next year, the government is expected to incur a budget deficit of $469 billion and then another budget deficit of $536 billion in 2016. (Source: Congressional Budget Office web site, last accessed July 21, 2014.) From there, the budget deficit is expected to increase as far as the projections go.

Yes, the government’s own estimates are that our country will run a budget … Read More

The Mother of All Bubbles?

By | December 5, 2013

real estate marketAs I often harp on about in these pages; economic growth occurs when the general standard of living in a country gets better. You can’t say an economy is improving when a significant portion of the population is suffering. You can’t claim there’s economic growth when the poverty rate is increasing. You can’t say the economy is improving when personal incomes and savings are declining.

Looking at this a little … Read More

The Only Way to Protect Your Investments from the Turmoil in China

By | June 26, 2013

The Only Way to Protect Your Investments from the Turmoil in ChinaThe deleveraging that’s taking place around the world is obviously echoed in tumultuous capital markets, but a retrenchment in the bond and stock markets has been overdue for ages.

As is usually the case, several catalysts came together at the same time to produce an unsurprising stock market sell-off. These included: comments from the Federal Reserve regarding quantitative easing, rising 10-year Treasury yields, weak earnings from benchmarks, and concern over … Read More

The New Housing Boom

By | March 27, 2013

New Housing BoomMy cousin and his family had to walk away from their house in Arizona. There were no buyers, and they were underwater after the market crashed. The whole thing was really hard on them on all fronts, and they had to move. They’re in Colorado now, closer to family, with the ordeal behind them.

Like most things, timing is everything. In real estate, institutional investors are buying homes like crazy … Read More

Will Housing Stocks Crash?

By | November 15, 2012

Housing Stocks CrashOne of the most often talked about parts of the economy is the real estate market sector. Because real estate is such a large and important part of the economy, naturally, many eyes are focused on whether or not this market sector can and will rebound from its deep decline.

While we have certainly seen a strong bounce off the bottom, there are still many concerns for the future of … Read More

The Stock Market & Oil Prices: A Dangerous Duo

By | March 28, 2012

 investor sentimentIt really is the perfect environment for higher oil prices, which is both good and bad for the U.S. economy. Higher oil prices reflect a better economic outlook, as speculators bet on better gross domestic product (GDP) growth in the U.S. market. This translates right into the stock market. But, as we all know, higher oil prices also mean higher gasoline prices…and this is inflationary and cuts into consumers’ incomes…. Read More

Our Annual Forecast: How Much
Home Prices Will Fall This Year

By | February 2, 2012

For the past four years I’ve been singing the same tune…

The U.S. economy cannot recover unless the U.S. housing market recovers. As a past “real estate man,” (in my life), I’ve never seen an economic recovery unaccompanied by a real estate market recovery.

There was a lot of speculation going into 2011 that it would be a year for the U.S. housing market to find a bottom. Well, the … Read More

Stock Market Reality: Good Corporate Earnings Just Aren’t Enough

By | January 16, 2012

Stock Market Reality: Good Corporate Earnings Just Aren’t EnoughOne thing really bothers me about the trading action in the stock market so far this year. While there is positive anticipation regarding corporate earnings, the stock market seems to be selling off on positive, non-corporate news and this is worrisome. Investor sentiment has improved from the fourth quarter last year, but it’s still not strong enough to foster any sustainable upward price trend at this time. Companies are … Read More

My Must-read, Realistic Story About the Future of Our Kids

By | November 11, 2011

A realistic look at job creation here and around the world and its effect on the future of our kids. It’s 3:00 a.m. and I can’t sleep. A couple of days ago, I read a story on the high unemployment in Europe and how the young find it so difficult to find a job (“Europe’s Lost Generation: No Jobs or Hope for The Young,” The Globe and Mail, 11/07/11). Because of the lack of job creation here in North America, I can’t get the idea of our kids having … Read More

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