The Absolute Wealth newsletter will be watching the market closely, because they say that this type of market can destroy buy and hold investors, while traders will thrive.
Austin, TX. (PRWEB) January 24, 2012
The Absolute Wealth newsletter says the quiet rally being seen in stocks for January has been the result of the world seeking safety in U.S. assets in the face of uncertainty. The reason people are seeking investment safety in assets of the United States, is because the United States has the largest economy and the richest tax base, the Absolute Wealth newsletter reports.
The U.S. dollar has been rising through the fourth quarter of 2011, which will impact the first quarter earnings of 2012, reports The Absolute Wealth newsletter. The newsletter says, the companies that do international business, like IBM, McDonalds, Proctor and Gamble, etc. are the ones that have enjoyed the biggest profits from this environment. The Absolute Wealth newsletter explains that when the U.S. dollar is weak, companies that do international business, have products that look incredibly inexpensive to economies with strong currencies. When the U.S. dollar is strong, their products look more expensive, and open to competition, reports the newsletter.
Research from AW Research Publishing, shows that this bleeds over into real estate, because sales and profit forecasts for the real estate market were predicted on the basis that the real estate market bottomed out in 2011. The research shows that the real estate market did not in fact bottom out, because banks have been holding onto their foreclosures hoping to sell them when the market had more strength. With the law of supply and demand, the market will be over saturated, and the banks will try to beat each other in selling off their foreclosure inventory, the Absolute Wealth research predicts. The Absolute Wealth newsletter says this scenario will drive real estate prices down further.
Financial stocks will take the hit, The Absolute Wealth newsletter predicts, because the consumer will not be able to refinance their home or pull money out of their home, which will impact stocks. Absolute Wealth has predictions in their newsletter, about how the nice, quiet period that January 2012 is currently experiencing will be coming to an end, and the market will experience volatility just as 2011 experienced.
Over the next few weeks, The Absolute Wealth newsletter will be watching the market closely, because they say that this type of market can destroy buy and hold investors, while traders will thrive. Read The Absolute Wealth newsletter for comments on the markets over the next few weeks and months, because it could become very volatile.
About AW Research Publishing
AW Research Publishing provides experienced, expert research and opinions, not investment advice, that an individual can use when preparing their investment strategy. The information and research that is published by The Absolute Wealth newsletter, is not financial advice but financial data, statistics, and information for individuals to use when they are trying to structure their future financial plan.