You don’t have to be a brain surgeon to realize that housing market is not going to turn around overnight. Even the homebuilder CEOs are finally admitting that this environment “sucks.” Economist Nouriel Roubini has been calling this blood bath for what is for awhile. I haven’t seen him on Kudlow and Company in awhile. My guess is that he is a little too bearish for old Larry.
Excuse me as I digress for a moment, but speaking of bears…. Peter Schiff is by far the most bearish guest to ever set foot in CNBC studios. It cracks me up when they invite him on the show. In the midst of possibly the most bullish market since 2000, Schiff, a U.S. market bear, is out performing most bulls by investing in foreign securities. It throws the bulls for a loop in the bull/bear debates as they expect him to sit in a corner eating humble pie. At the end of the debates, they wish that they were more bearish. LOL – Sorry, sometimes I write this stuff for my own entertainment.
Back to Nouriel….
In his latest missive, he continues his crusade, to educate those willing to listen, on the condition of the real estate market and its potential impact on the economy.
Although, I agree with his assessment (what I think). The market continues absorbing bad news and plowing forward (what I see). Even yesterday’s news of two Bear Stearns’ hedge funds on the brink of collapse couldn’t keep the market down two days in a row.
As traders, we must trade what we see; not what we think.