real estate market

U.S. Existing Home Sales Highest Since 2007

By Friday, August 21, 2015
U.S. Existing Home SalesThe U.S. existing home sales surged to an eight-year high. On Thursday August 20th, the National Association of Realtors published its report on exiting home sales for the month of July. (Source: The National Association of Realtors, August 20, 2015.) In July, total existing home sales increased two percent to a seasonally-adjusted annual rate of 5.59 million units in July from 5.48 million units in June. This marks the .

Economic Collapse: Canada’s Real Estate Bubble Beginning to Burst

By Tuesday, August 18, 2015
Canada’s Real Estate BubbleMore and more office towers in Calgary, Canada’s energy capital, are sitting empty, another sign the country is in the midst of an economic collapse and that the bubbly real estate market is beginning to burst. Layoffs by oil and gas majors have driven vacancy rates in the city to 11.5% in the second quarter of 2015—up from 8.3% last year. Much of the blame has been placed on energy .

Housing Market: Affordability and Interest Rates Working Against Higher Prices

By Monday, July 20, 2015
Housing MarketThe National Association of Realtors’ Housing Affordability Index has dropped 12% in the first five months of 2015. (Source: National Association of Realtors, last accessed July 16, 2015.) In January, the qualifying income to get a mortgage for an existing median-priced home in the U.S. was $36,576. In May, buying a median-priced home would require $41,712 in income. Let’s be honest; incomes in the U.S. economy haven’t increased by much .

U.S. Housing Market: 3 Reasons Why Prices Will Decline

By Friday, April 10, 2015
Housing MarketThe U.S. housing market has come under pressure as housing starts have stagnated since the end of 2013, interest rates are poised to rise this year, and first-time buyers are missing from the housing market. Buyers Missing From U.S. Housing Market In February of this year, first-time home buyers accounted for 29% of all the existing-home sales in the U.S. economy. (Source: National Association of Realtors, March 23, 2015.) In .

2015 Housing Market Forecast: “Dead Cat Bounce” to End This Year

By Wednesday, January 7, 2015
Housing MarketIn November, existing-home sales in the U.S. declined 6.1% from the previous month. They dropped to the lowest annual pace since May of 2014, falling to 4.93 million units from 5.25 million in October. (Source: “Existing-Home Sales Lose Momentum in November as Inventory Slightly Tightens,” National Association of Realtors web site, December 22, 2014.) December existing-home sales are yet to be released. The numbers for existing-home sales do not bode .

About That 500% Jump in Interest Rates…

By Monday, 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). .

The Sobering Issue

By Friday, 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 .

The Mother of All Bubbles?

By Thursday, 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 .

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

By Wednesday, 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 .

The New Housing Boom

By Wednesday, 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 .
Sep. 4, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: The $2 Silver Stock Every Investor Should Own!

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