Panic in residential real estate market marks the end of a major downturn – be bullish on US Dollar, stocks and real estate
Peter Oberois
Apr. 6, 2008

The econometric, quantitative and analytic models are all showing signs of life again. The gloom and doom that we were predicting for the last two years have finally come. The US economy touched the major depression. But surprisingly the same models that predicted deep recession and a financial meltdown two to three years back because Fed’s ruthless policies, are telling us a different story now.

The US economy is about to a new cycle of growth while the rest of the world will go into deep recession if not depression. The recovery in US economy will be selective. The free market will show its power. Talents all across the country will be rewarded. The talented business entrepreneurs will be successful. It will take decades for the financial sector to recover. US Stocks especially the growth sector, US Dollar and residential real estate will boom to the surprise of all.

Interestingly, the index of pending home sales fell 0.8 percent for the month, according to the market expectations ahead of a report from the National Association of Realtors.

The panic is real in the main street and the Wall street. That is always the case before a major bottom. The biggest rally will be in US dollars as all economies other than that in US will perform sub par.

The gap between imports and exports has started to shrink. The market expects $57.2 billion in February from $58.2 billion the prior month. The export boost provided by a weaker dollar, which makes American-made goods less expensive for overseas buyers, is helping to avert a deeper slump in manufacturing.

What will change the hole equation is the US trade policies going forward. US will be proactive in making sure the trade policies are fair. That will reverse the trade balance and balance of payments scenarios.

Panic in residential real estate market marks the end of a major downturn – be bullish on US Dollar, stocks and real estate
Peter Oberois
The econometric, quantitative and analytic models are all showing signs of life again. The gloom and doom that we were predicting for the last two years have finally come. The US economy touched the major depression.
READ MORE>>

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