There was a time when the tops and bottoms of markets were called by what was on the front cover of Time magazine. If Time wrote about a bull market, it was time to take profits. I’m not sure anyone reads Time anymore. The last occasion I had to pick it up at the dentist’s waiting room, it read like a cross between People and the preachier parts of The New York Times.
Today’s harbinger of contrarian fortunes may be 60 Minutes or 48 Hours. Yesterday, I saw a segment talking about McMansion ghost towns in Cleveland and Stockdale. If you read the news articles listed for Standard Pacific Corp., nine out of 10 will be thinly disguised fear-mongering and socialist class baiting.
The great irony is that the 10th article will tell you that the housing sector is bouncing off the bottom and is the leading market sector. The Federal Reserve just cut 0.75%. It will cut another 0.50% this week. That will put mortgage rates below 5%, maybe as low as 4.5% — the lowest in a generation.
I know I’m going to refinance several loans before inflation rides to town with Obama’s toothy grin. (Sorry, didn’t mean to get too political!)
Ladies & Gentlemen and Fellow Real Estate Investors:
The bottom is in for homebuilders — and mortgage guys!Remember, the deals will be made during the second half of this year. Start dusting off your portfolios and get your strategies together (flip, rent, speculate) and be ready to make some serious $$$ over the next 18 – 24 months!
|
|
|
