Major Market Movers

Welcome 2008…

Well dear reader another year has come to an end, and as they say the end is merely a new beginning and that is what we hope to you and the US economy as well. What better way to end our year journey but with data from the tarnished sector in the US shedding over us glimpse of hope, as we need optimism…

The National Association of Realtors released their November figures to sales of previously owned homes which provided a sense of stability rising 0.4 percent on the month to an annualized 5.0 million units, from the upside revised previous of 4.98 million in October. That was probably the push markets needed to just be happy celebrating this eve, while the truth is there is no solid proof that misery has come to an end as expectations are still gloomy for the US in 2008.

The thing better than the rise in sales was the actually inventories of unsold units in the market ticked down 3.6% yet prices are still down 3.3 percent on the year. The disturbing news was the words of NAR Chief Economist Yun as he suggested the Feds make a large one rate cut in January of minimum 50 basis points and preferably 75 basis points rather multiple smaller cuts.

One might wonder does that mean the US is finding shore or that what we have seen is just the tip of the iceberg, tonight is the night were the fed needs to set their resolutions for the year and it should be revolving around two things, be more TRANSPARENT and recruit all means possible to salvage the ECONOMY!

From me to you are sincere wishes of a Happy New Year, enjoy your holiday and make the start good enough to remember for we are about to enter a new era and you need all the energy and mental stability that one can have… ENJOY