May and June are looking pretty bad for equities. Europe's problems, signs of slowdown and deflation, persistent high unemployment,... not much to cheer for. This is what one expects when government supports are withdrawn gradually from the economies. At least U.S. and some emerging markets are not collapsing.
Gold is at new record. Some say it's a sign of inflation. Not really. It's just a flight to quality when major currencies are having major problems.
Home builders are taking a beating. The expiration of home buyer's tax credit is having a marked effect. But more important than that is the fact that the economy is not producing enough jobs. Momentum seems lost.
This is a good time for patient investors.
We're buying a house, finally.
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Good timing on your house purchase. Hope your closing is scheduled so you can claim the home buyer tax credit!
ReplyDeleteThank you Tom. We'll not get the tax credit. But we'll probably get more benefit out of the expiration. Buyers are now fewer, and the rate is getting even lower. This is partly because the tax credit had pulled buyers forward, and now it's like a buyer vacuum. Multiple reductions in price seem necessary to move a property.
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