In a rate of absorption
(flow), the discussion become very linear and trends tend
to become "predictable" because, having controlled
all the variables, you have to be able to repeat the experiment.
This can be done in science to produce theoretical results.
But, this is never complete reality!
Investors came in, other
buyers were streching their budget and now we have too
many shaky assets, too many
empty homes (some investors are just walking away...),
not enough buyers, reduced prices (deflation)
and peope wanting to turn homes like stocks! In our October
2007 Newsletter we developed this idea.
Stock market trends
- Cause and effect:
Interest
rate is lowered = results
stock rebound
Deflation
= stocks will go even lower
Interest
goes lower = bonds will mover
higher
Start paying
debt = usually done with
money
Demand for
money up = value of money
increase
It's a science where all
the variables can be controlled and predicted! See...we
told you that it's easy.....NOT!