This is the blog news update, where we cover some key news that directly affects those who are into forex trading, real estate investing, or anything that is along the lines of investing in the U.S. and the Global Economy. Please reference the articles posted below.
I woke up this morning to an email from a random person. "The Housing Market Cool Down Begins" - or something of that nature - popped up on the subject header. I raced to Google news to confirm this. Sure enough, they were on the money (whoever "they" were).
Top economists and analysts are projecting that the housing market cool-down will have a recession to follow. Others say that is not likely to happen, as they have already set parameters in place to prevent another dotcom or 2008 crash. Despite the "he said/she said" debate, the charts and facts all line up. With the FED trying to control spending with inflation hikes, there's no telling what new mistakes they are making by trying to correct the mistakes of the past. COVID-19 brought on a high unemployment rate, which almost led to a recession. Now that the COVID-19 pandemic is slowly coming to a close, the time to have an inflation rate hike has become the top news story in the U.S. and around the Globe.
I find it funny, however, that being in an age of technology and information is both a good thing and a bad thing. It's good because we can now stay on top of news and investment strategies, similar to the pros. However, it's bad because the FED is abusing such power to control an already-out-of-control economy. The FED did not account for a COVID-19 recession to hit, nor did they predict it into the economy. They may have tried to correct the mistakes of the past. But back in 2008 and the dotcom era, COVID didn't exist. Not only that, but other factors, such as the huge gap between jobs and consumer spending - not to mention, the decline in people's personal savings - has to be taken into account.
Why talk about this? Well, history does repeat itself, but in new ways, shapes, and forms. Now, more than ever, this housing market cool-down could spark a technical recession, one economists says. But, it may also lead into something we have never seen happen before. No matter how many policies they come up with to prevent a huge economic crash, there is no controlling what is spiraling out of control already. All of this will directly affect the forex and stock markets, along with other markets such as bonds and futures. How it will affect it is uncertain, as economists have no idea what path the U.S. is heading.
If you are currently investing into real estate, forex, or any economic endeavors, I encourage you to use due discretion and caution. Make preparations if and when necessary. There's no telling what may happen in the next 24 hours.
To read the articles for further clarification, click the links below. Don't forget to leave a like and a comment on what you think. Hearing your thoughts and your perspectives - in a healthy conversation - is important to this blog. Thank you!
Articles of Reference:
https://fortune.com/2022/05/27/housing-market-correction-peak-mark-zandi-moodys-home-prices-outlook/
Even though the FOREX market is affected by these turn of events as well, I think it's the safest bet because we can still make money. The "buy low sell high" concept does not apply unless you look at it from a "trend" stand point. If you can catch a trend you want to be at the beginning going up or down.
As far as these worldly events are concerned, those of us that know our Bible have a heightened awareness on why these things are taking place.