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It seems as though with the raising of the DOW property values are on the decline. The DOW, even in its unsteadiness, has made more gains over the past few months than real estate. As long as the DOW maintains its cycle it will end the year with a positive gain.
But, what about property values?
With the onslaught of more foreclosures and less and less successful loan modifications, property values will continue to decline. This means you will be finding more and more deals, especially since credit lending is becoming tighter. Loose lending practices which landed home owners in the current foreclosure mess are now a thing of the past, or are they just taking a break for now. Our past banking system has taken a bad toll on our economy.
The economy will not improve until people begin to feel more secure, and lending institutions become more accountable with the extending of credit. More individuals are continually moving towards using cash only at the registers, and at home are using scissors on the once preferred method of spending.
Will being a liquid society help the economy to stabilize and have growth?
Becoming liquid will cause a slow down in the growth of our economy. How many people are able to buy a car, house, or any other big-ticket items with cash only? It takes time to earn, and save.
Does this sound like bad news? Yes in a way it is. But if you are able you can take the bad news and turn it to the benefit of yourself and others. How can the average person extend a helping hand to a snowballing problem? By understanding the principles of arbitrage whether it be negative, neutral, or positive. Money invested wisely can make money no matter which arbitrage is present.
So which is better the DOW or real estate? Learning to capitalize on situations with diversification is best.
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