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Volatility Returning To Markets?

2 May 2010 No Comment

This past week had 3 100+ point moves in the Dow.  A rarity in the world of slow, but constant moves higher in stocks as mandated by economic master Ben Bernanke.  Two days of down 100+, and one day of up 100+ this past week.

Sovereign debt , so-so GDP numbers and the potential for removing of stimulus from the economy has investors eyeing more volatility in the near future.  At least the markets aren’t so boring during weeks like this.  I want some buying opportunities!

I definitely believe we have more tumultuous times coming in stocks in the 2nd half of 2010 and definitely in 2011, but that is my guess.

Now, my economic views are solid, but I’ve learned plenty that predicting the stock market is near impossible.  We may continue higher.  And, we may not.

Housing Recovery?

Meanwhile, a quick aside on housing… houses in my neighborhood, an upscale, suburban neighborhood in a decent location, continue to slide lower in value.  After what I thought was a good sign when the bank-owned house across the street from me got scooped up after only a days on the market when being listed at $235k, that deal has apparently fallen through, and now the house is listed at $215k.

I fear what will happen after this spring season that has been boosted by the tax credit is over.  I’m not saying it’s going to, but what if housing values fell another 30-40%?  Imagine the awful situation that would bring to the U.S. economy.

Caution is the name of the game.  Still.  Especially as more and more mainstream news outlets and magazines announce “We’re back” and the “Recession is over”.  Caution!

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