Housing is the Market to Keep An Eye On

You did read that right, housing is going to be a market to watch into. Now you don't have to be following the news obsessively to know that the housing market has really dropped out at the bottom in the past number of years.

Keep An Eye on the Housing Market and Invest At Your Own Discretion. 

In some ways, it does sound like a sound theory. The housing market has bottomed out, hitting points what would be appalling, the lowest of the most low levels that the economy has. The stocks for many companies resulting in the housing sector have plummeted right over the past number of years. Surely it cannot go much lower? Given the old, "buy low, sell high principle", one would think that now would be the time to jump on the bandwagon at the ground floor.

Here is the thing with housing or anything regarding any economic data. The bar that was previously set has been raised just a little bit lower as we have gone on. We cannot say for sure if we have hit the bottom or whether there is a bottom to hit. What is the base, most lowest that a sector can reach? Where every single housing company just goes right out of business? That might be the bottom and that is a low bottom but given what we know about the economy, it is not a surprising one.

Essentially, everything that we think that we knew previously about the stock market, we might be sorely mistaken on. The fall that we had, it could start a slow and gradual turn around tomorrow. That slow and gradual turn around could lead to something grand or the rug being snapped right out from underneath us once more.

A huge part of the issue is this. We tend to still look at the 21st century world with principles that worked in the 20th century. The problem is that those who are making the key situations are woefully behind the times and thus don't realize that their short sighted decisions or decisions based off of things that were relevant fifteen years ago are going to kill us. While the housing market is a market that does tend to mandate a bit of watching, do not be foolish and thing that the bottom cannot drop out anymore.

When things start falling, they could fall fast and they could fall far. You can have all of the bailouts, all of the stimulus packages, all of the quick fixes. The housing market has been something that has been hit the hardest by the recession of the past several years but to say that we are on the way down.

Yahoo says it is smart money. I'm not sure if there is any such thing as smart money now. I think that those who managed to hold onto their money despite everything that has happened, whatever they are doing is the smart money, but obviously going off this whim based on some encouraging news that could turn around