The DOW is poised and ready to hit 12,000 before the end of the year. There are many things, including the current cycle, which factor into the greening of the stock market. Don’t let today fool you.
The weaker dollar (read “What IS the Value of Money” blog post) the fed’s lowering interest rates to historic lows-cheap money if you can get it-, unemployment not changing too much, and the halting of more than one million foreclosures. All this is more attractive to domestic and foreign investors.
How will this impact America, an improving recovery. The recovery will still stay slow but the pace will pick up a little bit more.
The real estate market will also benefit with the halting of many foreclosures. This will be a false positive improvement for the real estate market.
The foreclosures are only halting to perform a final check of documents before going to the judge for court approval. So the process of foreclosure will continue but will stop to ensure there are not any mistakes or oversights.
It only makes sense for lenders to do this; it is already costing the lender legal fees to start the process of foreclosure. To go to court only to have the foreclosure rejected and then have to check paper work for inaccuracies and then return to court to take another stab at it, is only costing money and time, neither of which is currently in great abundance.
Investors can leverage all this new information to increase their portfolio’s value. Remember there is still an avalanche of foreclosures on the horizon and money is cheap but hard to get. So, investing in real estate will prove to be the best investment in the long run.
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