Will the USA housing bubble burst and will the Fed continue past 5% possibly triggering a bear market? If so, will this pull Canada down with it?
119675
I would say the consensus of most experts would be: We don't know. But if you can handle the ups and downs, stocks and bonds will do well over the next 20-30 years. I invest for the long run.
570439
Keep in mind...........\n\nTimes and markets are changing!\n\nIn California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???\n\nThis last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.\n\nFrom 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!\n\nWith all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!\n\nFor some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:\n\nhttp://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm\nhttp://www.brokerforyou.com\nhttp://www.san-diego-for-sale-by-owner.com\nhttp://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us\nhttp://www.brokerforyou.com/blogger/index.html\nhttp://san-diego-coastal-real-estate.blogspot.com\nhttp://sandiegofsbo.blogspot.com\nhttp://downtown-san-diego-real-estate-views.blogspot.com
321077
If not exactly, yes they are interelated, reason being, that when Fed hikes interest rates people tend to put money in the local interest earning instruments because of low risks (Obviously) and Better&Assured returns (Due rise in interest rates) consequently the money flowing towards indian equity/capital markets, in pursuit of higher returns, gets diverted towards american money markets because of more security.\n\nThe above one is a general view, if we look in particular, the real effect comes from lowered consumption caused in the domestic markets of america, because people tend put more money in savings in pursuit of higher returns over period of time. \n\nThis fall in comsumption in the largest consumer market in the world may cause disturbances in other countries India and especially China (For whom america is the single largest for its cheap low quality goods, due openness of the  american markets) due to this corporates may take a blow and sensex falling down is just a reaction to it.\n\nI would like you to note that a hike in FED has a more Global effect than the hike in indian or any other countries rates. \n\nThis is one topic on which you can write & write & write as much as you can so i wont bore further but rather leave it to you to deduct the further consequences.
271663
Well yes and no. Long story short it's possible because the US government is selling bonds to other nations, (more like extorting them to buy it, otherwise they will charge a very high tariff on all imports from that country)  and this allows a steady flow of cash into the economy.\n\nThis boom goes on until someone wisens up and demands the loaned money.  At which point, everyone who's borrowed money ends up actually having none, and this cause major and I mean MAJOR chaos.  Think this way, no one has cash. Everyone wants cash. But there is no cash.  Everyone is going to fall down like a domino.\n\nAnyway people call this "depression".  It's a result of living in decadence and buying everything on credit and assuming that tomorrow, your paycheck will be bigger.  Specualtion and greed supplies all the other necessity for a disaster.\n\nI really crammed about 10 books worth of info into a few paragraphs. I hope I got through to you.
634802
I don't think the bubble's bursting, per se...not yet.\n\nI think property values have gone up enough that people who have been there for awhile are ready to cash out.
578139
Interest rate worries are the main concern.  Bernake is lookingot hike the prime another .25 caus eof inflation, more then anything thisis keeping all rallies down.  Don't forget the tech bubble burst from 2001 happened when we hit 6.5% interest and many investers think a ressecion will hit again if it goes that high.  Bernake clearly doesn't know what he is doing.
361207
Keep in mind...........\n\nTimes and markets are changing!\n\nIn California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???\n\nThis last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.\n\nFrom 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!\n\nWith all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!\n\nFor some great 'insider' articles on the San Diego real estate market, which I beli\neve will apply to any of the hot real estate markets of the past five years.....visit:\n\nhttp://www.brokerforyou.com/brokerforyou\n\nhttp://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm\n\nhttp://www.brokerforyou.com\n\nhttp://www.san-diego-for-sale-by-owner.com\n\nhttp://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us\n\nhttp://www.brokerforyou.com/blogger/index.html\n\nhttp://san-diego-coastal-real-estate.blogspot.com\nhttp://sandiegofsbo.blogspot.com\nhttp://downtown-san-diego-real-estate-views.blogspot.com\nhttp://san-diego-coastal-real-estate.blogspot.com\nhttp://sandiegofsbo.blogspot.com\nhttp://downtown-san-diego-real-estate-views.blogspot.com\nhttp://www.brokerforyou.com/san-diego-real-estate-sales.html\nhttp://www.poway-real-estate.info\nhttp://www.del-mar-real-estate.info\nhttp://www.la-jolla-real-estate.info\nhttp://www.los-angeles-real-estate-brokers.com\nhttp://www.san-jose-real-estate-brokers.com\nhttp://www.orange-county-real-estate-brokers.com\nhttp://www.san-francisco-real-estate-brokers.com\nhttp://www.sacramento-real-estate-broker.com
97786
Follow the 10 year treasury bond.  If interest rates in the US go up, then this attracts $$$ to dollar denominated investments which makes the $$$ stronger against other currencies.  \n\nIn the last week, it has moved from 4.65% to 4.85%.  The trend is for higher rates, but anything can happen in a week.  You can follow the bonds on yahoo finance, symbol ^TNX.  When you get a quote, you move the decimal point one place to the left and you have the yield.\n\nGood luck!!
269914
According to the census, Las Vegas is the fastest growing place in the nation so a good bet may be to buy in a new project with projected completion by the time you are ready to move.  This will help you lock the price and if things do not work out as expected to sell the option at a profit.  What you are seeing is a market correction due to increasing interest rates not a dip that will continue for too much time, the FED will review the interest rate again in June 28 so keep looking at the money news to see if the market is expecting the FED to increase or to maintain the actual rate.  If they plan to increase it, the further market correction is expected but if they do not raise it then it will be wise to start looking now since prices will not dip much more.  Good luck!
420751
i reckon so, im just waiting for a collapse, as are a couple of my pals who have sold and rented keeping the profit in a bank. interest is due to go up this week to 5%, and it will need to go up again before february. sounds good to me, lots of cheap houses that have been repossessed because silly people cant keep up with the payments when the fixed rate runs out and the payments increase by 40% a month.
179598
I am giving my answer without a crystal ball.  The market is on its way down because the price went up too quickly and a lot of emotional buyers got their new houses without knowing how to pay the mortgages.  We will see plenty of foreclosures unfortunately.  If you are looking, please just look and keep looking for the time being.
161255
waterhouse should be about $20.00 for that trade in the US. looks like you are talking about a Canadian account (rip-off).\n\nlook into interactivebrokers.com and see if they can handle that kind of account.
465971
Well-- no we shouldn't.   A depression/recession is predicated on the fact that GDP falls for a given amount of time.  GDP is still growing.\n\nGold going up was mainly on speculation and the fact that for a while there all commoditees were going up (due to demand and speculation).\n\nInterest rates are controlled by the fed via setting key rates and contorlling the money supply.\n\nWhat IS going to hurt us bad is the ever growing national debt.  Not the same as the deficit-- but that continues a well.
531413
Yes -- I think we're all shortly going to get caught out by continued increases in the interest rate, - borrowing has been made too easy.  You can't spend bricks - but even if you could, the value is volatile- and equity is hard to release in a spiralling market if you want to keep your value. The cost of living hasn't actually increased that much - but I agree, wages haven't gone up much at all to keep pace - and I think a period of inflation is about to hit us - watch this space!
562997
All futures brokers in both Canada and the US will offer the CME "Housing Futures and Options"  If you are Canadian, do yourself a favour and stay with a Canadian firm.  Member firms of the CIPF will offer up to $1,000,000 protection individually\nTry this website  http://www.commoditytrader.ca
651191
I just tried to answer this question, typed several paragraphs, then you pulled it. What's the deal?\n\nAnyway, I also sold the EUR this morning, but got stopped out on the spike up at 8:30 prior to the decline. It then declined 50 pips.\n\nIf you had used a trailing 20 pip stop, your trade would have worked out fine.\n\nDon't you move your stop to breakeven when it goes in your favor?\n\nYou did the right thing by executing on the short side, but just didn't manage it when it started running. You have to know that a news release that cements in another rate hike is going to cause volatitility.\n\nThe reasons it went a certain way are unimportant. Just because it doesn't do what you expect is no reason not to trade it. Just follow price and volume, increase your odds, and decrease your risk where and when possible. Sometimes there are no reasons, and you would rarely trade if you had to have a reason every time from some media talking head.\n\nTrade the Mini when volatility increases if you can't afford to lose $1,500.
422794
There won't be a crash, too many people want property as its the only real investment these days.  You should get on the ladder now before prices go up again.