The Market Dodged a Bullet, but Another is Coming

Submit A Comment | View Comments

On Thursday, July 1, 2010 the market had one of the worst news days in recent memory. Essentially, the experts are saying "the market is now fundamentally broken" and to expect large declines in stock value over the coming weeks. The bottom line is that the stimulus put in place is not working yet, but watch out, QE II (quantitative easing package II) is in the works, and will be showing at a theater near you around the fall elections. The point here is that we will rack up a total of 4-5 trillion or double the amount already spent to win the battle of inflation over deflation. An inflationary period is coming, but now perhaps later than anticipated. Builders will most likely endure another round of declines before housing takes off with inflation. I wrote about the impact of inflation on housing in my article titled, Housing As Good As Gold http://avidbuilder.com/content/housing-good-gold.

We will get our inflation, but look out; it won’t come without a likely dip before and continual volatility in the housing market. I still recommend picking up cheap land, but it is best now to wait for the second leg down before stockpiling any further. Only the smart will survive, so tread carefully.

I welcome your input.

Best Always,

Paul Cardis

 
 

Comments

Be the first to add a comment to this post.

Comment on this Post

Post your comment below. If you wish, enter a username and password though they are not required. Please read our Content Guidelines before posting.

 

Enter the code shown in the image

Username is optional

 

Enter a password if you want a username

 
 

About the Blogger

Paul Cardis

thumbnail image Avid Ratings is a full-service customer loyalty management firm, providing enterprise-level surveys, organizational strategies, employee training, and proprietary solutions that create delighted customers and drive increased profitability. Working with over 2750 homebuilders throughout North America, Avid goes beyond just surveys, it delivers solutions that significantly improve the bottom line of its home building clients.