New home sales will show little change – economy is ready to accelerate for next six months – stock market confirming
Sam Adelton
Oct. 24, 2006

The gloom and doom in residential real estate will come to an end temporarily. The market sentiment is so bearish that a snap back rally is required for any longer term bear market in real estate. In other words, we are seeing some kind of a bottom. The bottom can be the start of a new bull market or a correction within the long term multi-decade bear market.

September new home sale figures are due at 10AM on October 26th. All eyes are set at that magic stat. In August it came 1.05M and the market is expecting exact same this time. Analytical models are showing it will be slightly higher because of bargain and great deals in the market place. Serious problem lies with investor held older homes though.

Home sales figure is very significant. The Fed will increase the rates again once the real estate market stabilizes. According to some models, the Fed may increase the rates three times in 2007 as price deflator starts showing signs of inflation again.

New home sales will show little change – economy is ready to accelerate for next six months – stock market confirming
Sam Adelton
The gloom and doom in residential real estate will come to an end temporarily. The market sentiment is so bearish that a snap back rally is required for any longer term bear market in real estate.
READ MORE>>

Stagflation in US economy will force Fed to raise rates in spite of decline in economic growth in 2007
Joesph Weinman
The economic growth will be in the range of 2.5 to 3.5% in 2007. The price deflator will show higher pipeline inflation. Fed starting March will raise rates again.
READ MORE>>

Consumer spending grew at an annual rate of 3.1 percent last quarter up from a 2.6 percent gain the previous three months
Alan Hersey
Lower gas prices are helping the consumer. The expendable cash is increasing and that is providing the consumer some joy and relief...
READ MORE>>

Home Resales figure of 6.27 M for September will be weaker but the worst has passed for now
Joe Weinman
The Sepetember home resales figure is expected to come out as 6.27 M from prior month’s 6.3 M. It will 0.47% lower than previous month.
READ MORE>>

As US economy looks up for the last time US Treasuries getting ready to retest the high in yield
Fred Day
The US economy has shown some strong resilience. It is bending but not breaking. When that happens, very soon the path of least resistance goes towards the north. The US economy may have started expanding forcefully again.
READ MORE>>

Crude oil still racing towards $30 a barrel
Sam Adelton
The unexpected supply from oil companies, lack strategic reserve requirements from America, China and India, hedge funds capitulation –all are working towards making oil cheaper.
READ MORE>>

POSCO, the third-largest manufacturer of steel in the world, plans to build a $361 million plant in Vung Tau, Vietnam
Media Release
Construction is scheduled to start in October 2007 and finish in 2009. The plant should be able to produce 700,000 metric tons of cold-rolled steel annually.
READ MORE>>

MORE ARTICLES >>