The Market Dodged a Bullet, but Another is Coming
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.