Market Watch!

I feel encouraged with the Marketplace. We are not out of the "woods" but we are seeing some good signs. Let me share some with you. They are from economists and people in the know.

Some good signs:
1. Car and light truck sales are up (I know that because 2 members of my family bought cars in December, 2010!)
2. Individuals are reducing their debt. People have tightened up and are trying to pay off debt and not create more debt. (Government should try more of this!)
3. The Corporate world is making profits, they are making money. Why are they not hiring but firing? Because until profits go up, they are going to fire. Now, they might hire if they knew what the government was going to do!
4. In small businesses, most are saying they would like to hire in the next 6 months. But, the big question is what is the governments going to do about the debt?
5. 45% of Corporations plan to hire in the next 6 months.

Citizens are worried since we know the Government cannot fund its National committments of even social security and medicare. The public feels the government cannot control their debt. We can't believe government since they have tried all of these incentives which have produced a "false economy that cannot sustain itself!" All the incentives have distorted the market and has delayed recovered. The Tax Incentive was a "Grand Social Experiment" which we couldn't afford. Instead the government keeps printing money and thus, destroying our savings as well, making it less valuable.

Home sales are based on Job growth, Low mortgage rates, and Home price appreciation. There is this fear of the "Shadow Inventory" of the foreclosures they still say are coming our way. Don't see how we can improve our market without clearing out that inventory, but there is a fear of what it will do to the market. (I don't think it will hurt us.)

The Job Market here in Texas is good. With such statistics, Texas is out of the recession but we won't feel like it until we know what the governments will do with the debt. With Texas' lower cost of living, with no state income tax, corporations are moving here to save money. We are in a good place to grow.

Just remember, if the market improves, so will interest rates! This is THE time to buy!