Friday, September 25, 2015

Real Estate Warming Up

There seems to  be a bottoming forming in the real estate sector. Most notably is the outperformance of DR Horton.
I feature Zillow (Z) here because of what appears to be substantial accumulation of the shares, and a chart formation that is often very bullish.

For some time I have felt that we are at the beginnings of a long decline in the value of the U.S. Dollar even as interest rates grudgingly rise, lagging the economy due to political influences. Recent wage increases and political pressure to raise them is contributory. Any rise in interest rates may stimulate some to "buy now!" before further rises even as it will make saving for a down payment easier. The next housing bubble is surely many years away, but the trend may be starting now.

As always, control your risk. Know when you are wrong. For me it is if I am losing money....


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