Shana Tova and good (predictable) news

By | 28/09/2011

Hello Everybody,

I would like to send you some good (predictable) news regarding the American housing market. The last report from CoreLogic shows a continued decline in the shadow home inventory (inventory held by banks mostly after foreclosures).

As you know already, a recovery of the american economy and especially the labor market, is based largely on stabilization and return to normal of real-estate markets. Buffett also said in the interview I posted here. Greenspan already said it back in 2008. The following graph from WSJ article illustrates the decline up till July, but home buyers sentiment bounced in September so we ought to see more declines in the months to come.

Home shadow inventory - WSJ

Home shadow inventory - Picture credit to Wall Street Journal

So although prices of stocks have declined since Yaniv's post on July, we are still firm in our opinion of that market will eventually stabilize, it is just a matter of time. The road is still long but we have patience, lots of it.

Remember, you do not have to catch the bottom, just to catch a good price.

I would like to send all the readers a Shana Tova, may this year you will succeed in all your endeavors. I wish you happiness and success, wealth and prosperity. May you be written and signed for a good year.

שנה טובה, מלאת אושר, עושר, פרנסה וכבוד, שתוכלו למלא את כל משאלותיכם ומאוויכם, לשנה טובה תכתבו ותחתמו.

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