Monday, August 15, 2011

Back to Housing

Ironic is it not? All the bad mouthing of America, the "credit downgrade" (by a thoroughly disgraced rating agency) and yet US rates are the lowest of any major credit. My, my.

We have ignored housing the past two years as there was no chance for a breech of consensus; that is, no opportunity for us. In the cellar is in the cellar. Now we’ve sensed something!

We can look for a spark, given 1) the tanking of US interest rates as world investors - thank you very much - ran for the covers, 2) the realization that civilization has not ended as we know it, that the powers of US resuscitation were not so much dormant as smothered; and finally, 3) the snowballing view that real estate is cheap!

We have July starts tomorrow. They were improved last month. Tomorrow’s reading may be off a tad, but then look for this and related housing reads to trend higher into year end.
 

Robert Craven

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