Lately, I used to be making an attempt to clarify the rationale why I made cash in each the Actual Property and the Inventory Markets between the years 2000 and 2005, but the financial system was probably not doing that nice. So I did some analysis and I discovered charts that present the Dow Jones industrial common over the past 10 years. I additionally discovered charts of the Fed Funds charge and Actual Property house gross sales over the identical interval. Once I in contrast the charts I discovered some fascinating correlations between the present actual property market, the fed funds charge and the inventory market.
I noticed that the final time the Actual Property market had a lot stock was in January of 1996. Once I appeared on the Fed funds charge in that very same yr, it was additionally rising between 4.75 and 5 % and that’s the place they’re now precisely 10 years later. So if we take a look at the inventory market at the moment it was additionally reacting the identical approach because it now. With all of this analysis, when you consider within the cash motion technique which stipulates that rich traders have a tendency to maneuver cash between shares, bonds, actual property and cash markets. The place do you suppose the Inventory market is heading? I strongly consider that we’re going to see some very bullish exercise within the inventory market over the following 2 or 3 years.
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