The sudden rise in home is actually sucking the liquidity out from the stock market – April crash?
Alan Hersey
Apr. 3, 2007

The stock market rejoiced the better than expected pending home sales. Yesterday I pointed out that the real estate will do better for now. The surprising bounce back in the Home Resale Pending data manifests the nice rebound in real estate. The residential and commercial real estate is bouncing back buoyed by the extra liquidity in the system.

But the stock market rejoice can be short lived. The main reason is that the investment interests mainly drive the current push in real estate. People are actually selling stocks to raise capital to buy cheap real estate. The liquidity from the stock market is getting drained into the real estate market bottoms.

The trend is actually much more significant that perceived because of the hedge funds. Hedge funds are actually moving out of the stock market to real estate. This can cause massive outflow of funds from stocks to real estate.

The sudden rise in home is actually sucking the liquidity out from the stock market – April crash?
Alan Hersey
The trend is actually much more significant that perceived because of the hedge funds. Hedge funds are actually moving out of the stock market to real estate. This can cause massive outflow of funds from stocks to real estate.
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Federal Reserve trapped in its own game – stagflation hits Main Street as housing markets slumps and rents start rising rapidly
Peter Oberois
People are paying high tax, high gas price, high heating and utility bills and now higher rents. As a result their residual income to spend in the fall is falling short of the economic expectations.
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The cyclical top in crude oil is in place and the secular bear market takes control of the chart - Iran Seeks U.K. Diplomatic Settlement
Peter Oberois
Where does oil go now? Well the scenario is simple. The oil top is in place. Crude oil fell in New York on signs Iran may step back from a confrontation with the U.K. over its detention of British naval personnel.
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Home sales rebounding nicely as manifested by the Home Resale Pending data – real estate in a cyclical bull market within a secular bear market
Alan Hershey
The surprising bounce back in the Home Resale Pending data manifests the nice rebound in real estate. The residential and commercial real estate is bouncing back buoyed by the extra liquidity in the system.
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The worldwide depression will be triggered by China-US tension over trade and Chinese spying – other nations are also concerned over Chinese ambitions
Karen Zuba
China-US tension over trade is escalating. America finally understands Chinese trick of delay and do nothing tactics. China's emergence as a world trade powerhouse, blamed in the U.S. and Western Europe...
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Service companies plan to boost spending at the fastest rate in 17 years – then why is Nikkei going down? What will happen to Dow?
Sam Adelton
But Nikkei is going down. What can be the reason for Nikkei to go down when the Japanese economy is going to go through the roof? Is it an April’s fool paradox?
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The slow and steady drop in ISM Prices confirms deflation – what is the effect on the stock market?
Alan Hershey
The ISM Price index is dropping slowly but steadily. While consumer price index and producer price index shows signs of mild inflation, the price deflator and ISM Price index are showing ample sign of soft trend in prices.
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