Housing Hubbub (Part 2)

Now the pundits are having their say.

Yesterday I discussed pending home sales. While they’re down year-over-year, they’ve been essentially flat for the last six months.

That’s good news? Don’t we want the economy to grow? I thought flat was bad.

Yes, but because the housing market has been falling, stability is actually quite encouraging. Interestingly, the number of pending sales has been falling since the middle of 2004. So while the underlying economics may be stabilizing, it may take a while for this to work itself out in the economy.

But the stock market is a forecasting mechanism. And any trend that predicts eventual stability in the housing market is going to be very good for consumer and financial stocks.

Given the beating that these stocks have taken over the past couple years, any whiff of good news should quite helpful.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-03T20:06:49+00:00July 10th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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