Independent, Fee-Only Financial Advisor

Independent, Fee-Only Financial Advisor

Thursday, September 07, 2006

Location Location Location

It's back to the housing market. Builders are not very optimistic about the real estate market going forward. No wonder. Inventory levels are such that many builders are finding themselves in competition with houses they built 6 months ago. While real estate is taking it on the chin, some economists expect business spending to pick up and fill in the gap. That would be positive for the big tech stocks. Wal Mart has announced plans to change their business model. No longer will every store carry the same items. They will be specialized, based on the local market. Wal Mart plans to build models based on 6 groups. One of those groups is "the affluent." Whoa! Cheap goods for rich people! Lower prices in real estate sent all indexes for cover. Dow -74.76 NASDAQ -12.55 S&P 500 -6.24