Housing Market Still Holding Back the Economy, Reports Leading Financial Newsletter Profit Confidential

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Weak housing data continue to be a drag on economic renewal, according to George Leong, long-time analyst and contributor for Profit Confidential.

housing market still holding back the economy

Housing Market Still Holding Back the Economy

There’s no home sweet home for the housing market and I would not be buying homebuilder stocks just yet.

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Weak housing data continue to be a drag on economic renewal, according to George Leong, long-time analyst and contributor for Profit Confidential.

According to a recent article by Leong, the Case-Shiller 20-city Index results for September showed that 17 of the 20 cities in the index witnessed price erosion in the housing market. The index fell 3.6%. The housing markets in Atlanta, Las Vegas, and Phoenix are at their lowest levels since the beginning of the subprime mortgage mess four years ago.

“If you have been waiting for a resurgence in home prices, don’t hold your breath” says Leong. “I have long been negative on the housing market despite some intermittent improvements,” he writes in Profit Confidential.

A strong housing market is critical for the retail sector, as homebuyers will tend to get new furnishings, including many big-ticket items, according to Leong. This is not happening as home prices continue to decline.

Foreclosures continue to drive the buying in the housing market, according to Leong. “This does not reflect well for housing price appreciation. It may not be until 2013 that home prices will steadily rise.”

Jobs, confidence, and higher home prices are needed to drive spending in the retail sector, according to Profit Confidential. With the unemployment rate expected to hold at nine percent in November and 15 million Americans still looking for work, don’t expect a rush to buy homes.

“There’s no home sweet home for the housing market and I would not be buying homebuilder stocks just yet,” says Leong.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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