ALL TIME HIGH STOCK PRICES:
Buy into Super Crash. All time high frenzy. Everyone did in 2007. Go ahead. Buy high and it just keeps going high. Give up buy LOW and SELL high your daddy and mommy encouraged. DO it YOUR WAY.
The market is likely to rush to 20,000 DOW in 2017. But some one where along this path way we will see a contagion event and SUPER CRASH. Our next event no one is watching as we move toward the American Thanksgiving Holiday ( and really would not we be better under the QUEEN – lets just go back ) but no we will give Thanks for the Indian’s helping us get through the winter before we slaughtered them. Sometimes you have to be in America to really understand American’s are actually pure – they have no clue about anything outside a 50 mile radius of a BURGER KING. They do not know their history. They are so prosperous they just live kind of close in. They do not know anything about the WORLD for instance.
I’m watching the Italy Constitutional Referendum which if it fails may start the clock on a EU economic disastor and Italy leaving the EU. THAT vote is what comes up NEXT and we’ll know Dec 5th…..for this American giving thanks. Thanks for all my readers world wide- thanks for YOU – and thanks for my wife and my children and my friendships and for CEO’s contribution to the world. So the markets are a casino and insane. Play on those tables “long term” at your own RISK.
Thats MY SONG and I”m stickin too it.
The second half of Oct sales of existing homes had dipped ( a lot ). Then the Trump effect happened. Mostly in the last week. Why? Sales of existing homes surged to a record monthly high. So I had to dive into the data. It is not real. It is not a normal market.
The Trump Train was in the last part of October becoming a light bulb in the markets mind – hey – this GUY may WIN and become PRESIDENT and “we” ( the market ) are on the wrong side of the market BET ‘if” that happens. And trillions began to MOVE.
We reported that all here. Then INTEREST RATES began to soar for home loans. Soar as they had not risen in a decade. The pent up buyers waiting for the best price and lowest interest saw two things surge. HOME PRICE and INTEREST both together alarming. So in record numbers at their brokers encouragement they moved in mass ( one time ) using up a huge inventory of buyers – to LOCK INTEREST RATES AND PRICES before Trump Got IN.
The prices have surged the interest rate has surged. NOW we will see – as the buyers also acted to beat WINTER coming in America. Now forward into winter with higher home prices and interest rates together how will the REAL MARKET PERFORM – after the buyer inventory has been used up by the ONE TIME SURGE?
That is what the data is showing and the future is going to be back to the new normal I suspect. There is too much home inventory and not enough home buyers who qualify by earnings to get a home at the price and interest the market is rising to – unless the credit rules relax as they did in the real estate super bubble of 2007.
The world is about to shift and shift again as the TRUMP POLICIES and PRESIDENCY deliver one thing for certain – SUPER CHANGE where nothing is certain any more.
Count on that.
Berny Dohrmann – Chairman CEO SPACE