A boon in the start of new homes sent the dollar up against the Euro and the housing sector overall gained on the day. What we are really seeing here is a reaction to some of the news from former Fed chairman Alan Greenspan regarding the expansion of China’s economy.
I don’t agree with Mr. Greenspan here because China’s economy is growing faster than we can really keep up. Companies like Starbucks have been very aggressive over the past year in terms of their own growth overseas and the government is fully behind the expansion.
Economically speaking, things have only been good in this country in pockets. The 5 year long wars in Afghanistan and Iraq are taking their toll on the American Public and the evidence can be seen in how consumers are spending, or rather how they aren’t spending their money.
Where I live, there are houses for sale everywhere but nobody is buying them. Overinflated prices are keeping the real buyers away and with the meltdown of the sub prime sector still fresh, potential “flip” projects aren’t being considered as much as they had been in years past.
So with this correction and some profit taking, it may seem like the trend upward is over. I don’t think so, but don’t be a pig. If you have had a good run in some of your stocks and you haven’t “schnitzeled” you should do so. Put that money to work elsewhere. I would also take this opportunity to buy anything you have been holding out for on the dip.
