«Market Leader» - news and previews making you rich.

Friday, 18 May 10:37 (GMT -05:00)


Market Leader Free Newsletter
Your Name:
Your Email:

Business And Politics News

US housing market perspectives: another soap bubble?

US housing market

 

 

The amount of building permits saw a sharp increase in May, indicating the revival of the U.S. construction sector and reassuring construction companies. Last month the year-to-year building permits index reached 8.7%, the highest value since Dec 2010.  Will the U.S. housing market see price decline against the background of positive fundamental data?
 

 

 

 

 

 

Tips for investors: possible price changes in the U.S. housing market
 
While the increasing amount of building permits usually tells investors about the growing confidence shown by construction companies, a significant increase in the index value is mainly determined by seasonality, says Doug Roberts, Chief Investment Strategist at Channel Capital research. He notes that mid and late spring is usually the best season for construction works due to the most suitable weather conditions. April’s floods and bad weather forced most companies to postpone the planned construction works, which eventually made the index grow in May. That is why slight growth is also expected within the next 3 months. Even thought the U.S. housing market is in poor condition, its recovery started when the Federal Reserve announced another round of quantitative easing (QE2). Mr. Roberts assumes that the end of QE2 and the excessive amount of new homes may affect the U.S. construction sector in the 2nd part of 2011.
 
In his turn, Egorov Ivan (donneo), a housing market expert from Masterforex-V Academy notes that after considering the 1st (major) block of economic indicators that have direct impact on housing prices, it is possible to conclude that according to the new technical analysis developed and introduced by Masterforex-V, housing markets obey the same laws as Forex, stocks, commodities and other markets:
1.       If the indicators show multidirectional movement, the price moves in a range (flat)
2.       If they move unidirectionally, there is a trend in the market
3.       Unidirectional FZRs (fractal-zigzag reversals) – a strong signal foreshadowing a strong market movement.
4.       Housing price charts provide the main info to analyze. Building permits and construction spending are the main indicators to monitor.
5.       Construction spending is a secondary indicator confirming the main chart
6.       Construction is directly connected with the population’s income. That is why a construction volume increase means economic recovery.
7.       Building permits are an anticipatory indicator. It is the leading housing market indicator. A n increase shows that the country’s construction industry is strong. Another important factor is that any housing market activity creates a wave effect - construction companies employ more working power in order to satisfy growing market demand.
 
Is there another “soap bubble” in the U.S. housing market that is going to burst?
 
The below chart shows the soap bubble of 1995-2006 that emerged thanks to the availability of mortgage loans and was the last bullish wave. After that the market collapsed, reversing the uptrend and initiating the latest global crisis in 2008.
Building permits can help us to trace the very beginning of the crisis: the chart showed a sharp decline a year before the U.S. housing market collapsed.
According to Ivan Egorov, if to try to anticipate the future succession of events, there is high probability of another decline. The recent slight growth was provoked by the Fed Reserve’s quantitative easing and interest rate reduction. However without an economic improvement such growth cannot be considered as the crucial moment that can reverse the downtrend. This is just some kind of retracement against the major downtrend.
 
According to Mr. Roberts, the U.S. housing market is currently getting more stable. However, it looks more like a patient recovering from an accident. He is off the critical list now but is far from completely recovering.
 
The number of pending homes grew by 3.5% in May. The number of pending single-family homes reached 419000K (a 3.7% increase).
 

 


 

график

 

 

 

Market Leader and Masterforex-V Academy offer you to discuss the topic. Please, visit the Academy’s forum for traders and investors and answer the question below:
Will the U.S. housing market manage to reverse the downtrend in the short run?
·         Yes, it will.
·         No, it won’t.
·         It will stay flat within a year.

 


 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Freedom House Releases “Freedom of the Press 2012”

 

Not so long ago Freedom House published its report called “Freedom of the Press 2012”. According to it, 197 countries of the world are divided into 3 groups: free, partially free and not free. Lets’ find out how objective this rating is.
Publication date: 11 May 06:40 AM

US Government Bonds Traded Within Flat

Stock exchange news. US Treasury has published a report about Small Business Lending Fund (SBLF) program for the 4th quarter of 2011. Lending has risen for over a third in comparison to the 3rd quarter and has amounted to 4.8 bln. dollars.

Publication date: 13 April 09:48 AM

Croatia: Economic And Investment Outlook.

 

The global financial crisis, which started in 2007 as the collapse of the US housing market, destabilized the global economy, thus diminishing the inflow of foreign investments in numerous countries around the world and affecting numerous industries, including tourism.
 
As for Croatia, tourism was a major “breadwinner” for the country’s economy until the breakup of Yugoslavia in 1990. The civil war almost destroyed Croatia’s tourist infrastructure. It has been recovering since 1997. Croatia is getting more and more popular with tourists…
Publication date: 05 April 03:17 PM

Tips For Investors: Is It Worth Investing In Vietnam?

 

As investors keep withdrawing their capital from Greece, Italy, Spain and other eurozone economies, a natural question arises: Where to invest the money?
 
There must be some countries around the world where a favorable investment environment is being formed, thus leading to an unexpected and powerful economic breakthrough like in Japan (1960s-1970s), China (1980s), or in Brazil, Turkey and Indonesia (1990s). One of such countries is Vietnam .
 
80% of Vietnam ’s territory is occupied by mountains. This is an agricultural country, with urban citizens constituting 30% of the country’s population. This is a big but relatively poor state. The GDP per capita is as low as $3100, which makes Vietnam occupy  the 166th place in the global rating.
 
However, not everything is that gloomy. According to the Asian Association of Traders and Investors under Masterforex-V Academy, Vietnam has made a powerful economic breakthrough over the last decade, thus increasing its influence in the region. According to Bloomberg, the Vietnam economy is Asia’s 3rd most promising economy after China and India.
 
It is highly probable that in a couple of decades we will be talking about a “Vietnam ese economic miracle”.
 
What makes Vietnam so attractive for investors?
 
Publication date: 04 April 10:51 AM

US Investment Funds: Winners And Losers

 

 

US investment funds have always been popular with investors from around the world. Let’s look at their financial performance in Jan-Feb 2012 to determine the winners and losers.
 
Which US funds showed the highest gains in early 2012?
 

 

 

Obviously, every single investor looks for profitable investment opportunities. Last year wasn’t a good one for investment funds. Some US investment funds reported major losses. The aggregate loss reached $123B. Paulson&Co lost $ 9.6B. This is the biggest fiasco since the collapse of Long Term Capital Management.
 
All investors are concerned about profitability. Most investors understand that the financial world has changed forever, with super incomes sinking into oblivion. Today’s most popular investments are standard and classic assets with the average ROI of 10-20%.
 
The biggest winners as of February 2012:
Publication date: 27 March 11:53 AM

US Banks Passed Stress Tests

 

US bankin gnews. Stress tests for banks may be called one of the key moments of this week. On Tuesday FRS announced the results of stress tests for banks. Reports show that the majority of large-scale US banks are able to fulfill their obligations in extremely non-favourable economic circumstances. The situation may then develop in the following way:
Publication date: 23 March 10:16 AM

Tips For Investors: What Is True And Delusive About China’s Strength And USA’s Weakness?

 

 

As numerous economic issues become more evident, investors keep pondering on the struggle between the USA and China for the status of the world’s most powerful economy. The USA has been the most powerful economy in the world for the last 70 years (it succeeded the weakened UK after WWII), adjusting the world for its own needs (from making the US Dollar the global reserve currency to spreading “democratic values” around the world, both in politics and culture).
 
However, everything changes. More and more experts start questioning the USA’s ability to preserve its global leadership. Maybe it is time for China to take over the initiative?
 
Publication date: 19 March 04:08 PM

PAMM accounts: Whose Service is Better?

News of forex broker rating. PAMM accounts have entered the lives of traders and investors suddenly and powerfully, as they managed to involve into work at forex market even those who… do not know how to trade here. Due to PAMM accounts, even those investors that are far from technical and fundamental analysis receive a very simple and clear way for their direct and often highly profitable investments: from the long list of best traders they are to choose the ones, whose results they find satisfactory and invest their means into his account. In such a case (provided that such warranty is given by a broker company) gained profit will be automatically distributed between trader and investor on a monthly basis.

Publication date: 13 March 08:09 AM

Why is "Market Leader" Banned by Uzbekistan Government?

 

Uzbekistannews. For decades much was banned in the USSR, from the books of Solzhenitsyn to "Voice of America" and "Radio Liberty", and the stronger were the appeals of communist ideologists to the party consciousness of Soviet people, the more attentively sensible people were listening to and reading what was banned. No fruit is so highly desired and sweet as the one that is banned.
 
The government of Muslim Uzbekistan does not seem to understand this biblical truth, having recently followed "the best traditions of former USSR" and banned initially "Radio Liberty", then Wikipedia (in Uzbek), and now the leading CIS portal for traders and investors "Market Leader" after its publication, jointly with "Ozodlik Radiosi" (Radio Liberty in Uzbekistan), of analytical article "For Investors: Who is Dearer to Russia Around CIS? What are the secrets of Russian and Uzbek relationships?" What frightened President Karimov?


Publication date: 10 March 09:07 AM

Islamophobia: Real Enemy Or Western Fiction?

 

The leading western mass media - The Guardian, The Financial Times, The New York Times, Forbes – revealed the shocking results of the report by Triangle Centre on Terrorism and Homeland Security, which specializes in studying terrorism and national security.
 
According to the report, it turns out that Islamists present little threat to the US national security. In 2011 only 20 US Muslims were accused of terrorism. Out of 14 000 murders committed in the USA in 2011, none was committed by a terrorism suspect. The bottom line is that the US Islamophobic sentiments are groundless. At least this is what numerous journalists and political scientists say.
Meanwhile, Islamophobia has turned into a major concern in the USA. Muslims are more frequently treated as enemies.
Publication date: 05 March 06:52 AM