Since I haven’t opined in a while, it is time for some updates… I have been working on three trades over the past few weeks and have been unable to pull the trigger on any of them. Some I already started the blog write-up in anticipation of the trade going through, but my limit orders have just missed on back to back trading days (insert mild frustration). I will wait patiently as there are no immediate concerns…
So I’m driving home from work today, and I hear that housing sales unexpectedly fell last month. Seriously? This particular radio program generally gives unbiased information, so how was this unexpected? Home prices can’t stay artificially inflated forever, can they? Politicians can continue to prop up prices, but there are waaaaaaay to many delinquencies-soon-to-be-foreclosures: too much oncoming supply with diminishing demand is a recipe for lower prices. And home prices fell. Six months from now, they will be even lower. My ITB trade is working nicely here (I may cover some <$10). Housing is just not an appetizing investment. And if you believe the hype that the house you live is an investment, you probably neglected the various costs of repairs, taxes, interest payments, etc (relative to renting). Here is a nice Real Estate 101 video posted yesterday (about 9 minutes in length).
