The decision today by the FED to keep interest rates historically low is good news for many -- specifically, the stock market and the housing market. Stocks now have a 'bottom'. Basically any sell-off will be met with hoards of buyers. And why not, low rates provide a perfect condition for stocks to rise. Rising rates would be the opposite. The FED wants the stock market to continue higher. Same goes for the housing market. With rates this low, and housing prices this low, investing in housing will become more & more appealing. (I actually just purchased a home last month, rented it out, and the rent is $100 more than my mortgage. How can you go wrong with rates this low?) The FED seems dead set on improving the housing market. Why? If housing recovers, the economy as a whole recovers, and then rates can finally be increased. One thing is for sure, at this time in our history, you MUST be investing in either stocks or housing, or both. Do not miss the boat on this one! One of the newsletters I trust & subscribe to is OptionSpreadStrategies.com, and they remain VERY bullish this month on the stock market. I believe that five years from now everyone will look back at this period in time and say "Wow, that was the time to buy."
My current favorite stocks include DVN, SINA, GOOG, ARMH, BAC, and DNDN.
-End
Wednesday, April 27, 2011
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