Recession?
As my readers know, I trade the stock market daily, and part of that is checking up on the economic market, and lately, the news has been pretty bad.
Despite the Fed cutting interest rate three quarters of a point, and George W. Bush giving out tax rebates, foreign markets have not been convinced that America is heading off recession. Add a quickly slipping dollar, and America’s financial horizon is not looking pretty. Many companies’ earning reports have gone down, with a few notable exceptions of course i.e. ~ Walmart, 100B in sales. America may be in for another interest rate cut at the Fed’s March meeting, or at least, such speculation has been helping the market today in pre-market trading. The Fed is doing all it can to keep consumers spending money and avoid a strong recession.
So with the interest rates being cut, (and possilbly being cut even more) real estate is starting to look pretty good to me. Real estate prices drop dramatically in depression/strong recession, and that combined with the low interest rates, would be the time to buy. The Great Depression made more millionaires than any other time in history, so look out for good deals starting to come around sometime soon!