A massive drop in construction of new homes (10.2 percent in September) confirms declining real estate prices in coming months – what’s the effect on the stock market?
Fred Day
Oct. 17, 2007

The plunge in new construction in September is significant. It is confirming a continued drop in real estate prices in the coming months.

However, the stock market may not be affected by the real estate trouble. As a matter of fact the tech sector in the equities is doing great.

The leadership has changed to the tech sector. There is accumulation of tech stocks going on right now. Software companies the new popular kids in the block.

While other stocks can get distributed, Dow can remain in a tight trading range because of real estate trouble, the tech sector continues to move up slowly but steadily.

A sharp 32 per cent drop in third-quarter earnings at Bank of America shows the financial meltdown is happening as 200 year banking cycles take hold of sector downturn
Peter Oberosi
Expect massive layout in financial sefvices sector. Eventual 60 to 70% of the jobs in this sector will be eliminated in the next several years.
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A massive drop in construction of new homes (10.2 percent in September) confirms declining real estate prices in coming months – what’s the effect on the stock market?
Fred Day
The plunge in new construction in September is significant. It is confirming a continued drop in real estate prices in the coming months.
READ MORE>>

End of Ericsson honeymoon since 2003 signifies an end of the global stock market bubble that started in the same period
Alan Hershey
The total route of the stock is significant for all equities in the whole world. It silently says, the emerging economies like China and India are too small to compensate for massive slack in US, EU, and Japanese economies.
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Dow can reach 11,000 by end of 2007 as foreign investors start fleeing the US equity and bond markets
Sue Brown
The exodus of foreign participation is creating a panic in the stock market. The market makers realize they are walking on thin ice. The fundamentals are getting very weak also.
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Losses on U.S. mortgage-backed securities have reached deep into global financial institutions – international bank on a massive decline
Sam Adelton
The confidence in US economy and the mortgages that back the boom in housing was too high. The perception was high and certain return. International banks got deep into the trend and now are suffering heavily.
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The Federal Reserve, Bank of Japan, and European Central Bank may be forced to buy US Dollar as world investors’ start selling record levels of US assets
Peter Oberois
Given the fact that Federal Reserve is interested in a quick and temporary fix, they will most likely opt for coordinated buying of US Dollar in the open market.
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Mortgage asset superfund pushed by Citigroup Inc., J.P. Morgan Chase & Co., and Bank of America Corp. only shifts the pain to next year with higher intensity
Kirt Meham
The fundamentals have not changed. The plans spreads the trouble to next several years but unfortunately the jamming is not over yet. It continues to grow and unfold as the financial meltdown proceeds slowly like the lava flow in a volcano.
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The spread between crude oil and gasoline futures show either the oil companies have trouble in their cards or the crude oil is ready to plunge below $50 a barrel
Bernie Snyder
The Hunt brothers learnt their lesson trying to corner silver in early eighties. In 1907 some copper speculators learn their lesson. This may be the time for a bloodbath for hedge funds and private equity funds.
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