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Real Estate: A Price Drop Is Coming, Economic Forecasting

By Administrator ~ April 15th, 2014

Hi,

 

Each month now, the real estate market in the United States seems to be rising to ever higher levels. Many markets such as New York City, Silicon Valley, California, Dallas and many others are at major new highs. Other markets such as Arizona, California, Florida and Nevada the hardest hit markets are rising and attempting to take out the highs of 2007. These market rises are unsustainable. The real estate market can not rise double digits monthly. We are seeing classic topping action which will be followed by a major drop in prices.

 

Now that we have gotten that good news out of the way: corporations are still having a sales increase problem. Most retailers are "lucky" to see a 2% to 3% increase in same store sales. And many are experiencing declining same store sales. This is not indicative of growth, but contraction.

 

The DJIA still looks to me to be heading up to 17000 plus or minus. This past weeks major drop was caused first by concerns that the economy was improving, followed TWO DAYS later by the economy was sinking. In each case, there was substantiation for either position.

Gold continues to perform ucky, but arnold foolishly still believes that we are still going to see $1550 plus or minus.

Oil is performing well at over $100 and could still rise to $125.

Interest rates are now about 2.65% for the 10 year Treasury.

The dollar still is performing badly and at the low end of its trading range.

Real estate (see above)

The economy still does not look particularly good to me.

 

arnold

 

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