Stocks are responding to higher interest rates right now. Its earning season and lets see what happens. The bears have been wanting a pullback and are pushing what levers they have. not gonna say market will come storming back but I think this sell off will prove to be overdone and short lived
What Im seeing is massive pent up demand that was not satisfied last year with new demand piling on top. Buckle up![/quote]
I just can’t imagine home prices going much higher. We shall see. WSJ said that the two largest insurers of expensive homes in CA (Chubb and AIG) are scaling back and dropping customers. They said replacement policies through other entities are costing 3 to 5 times the prior year’s cost. The article said typical homes over $10M often pay $20-40K per year and homes north of $30M pay over $100K. It is not clear if those are the old annual costs or the new annual costs.
As for the stock market, it probably won’t crash but we will probably see a correction (drop of at least 10%), not only due to rising interest rates but also due to massive valuations on companies that have never made a profit. Even the WSJ says that investors are getting real and pulling out of unproven companies. That is overdue.
That being said, if we just see a correction of 10%, that would only put the market back where it was when this “Sell” thread started which would make the prediction basically meaningless. To make it an accurate prediction, a much bigger drop would be needed.
