Popular Media Wrong About Housing Market, According to Leading Financial Newsletter Profit Confidential

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The market is near a housing bottom, but George Leong, contributor to Profit Confidential, is unconvinced it will be all up from here. Leong feels that while the housing market has definitely improved from last year and the start of the subprime housing crisis in 2008, the optimism is somewhat high and there will continue to be hurdles ahead.

Popular Media Wrong About Housing Market, According to Leading Financial Newsletter Profit Confidential

Popular Media Wrong About Housing Market, According to Leading Financial Newsletter Profit Confidential

“My concern is the shortfall in building permits could suggest an upcoming decline in future construction, indicating some slowing is coming in the housing market,” predicts Leong.

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The market is near a housing bottom, but George Leong, contributor to Profit Confidential, is unconvinced it will be all up from here. Leong feels that while the housing market has definitely improved from last year and the start of the subprime housing crisis in 2008, the optimism is somewhat high and there will continue to be hurdles ahead.

In the article “Housing Still Weak Despite What Media Says,” Leong argues that even though housing starts have been trending higher, building permits came in at 755,000 in June, which was below the 765,000 estimate and the revised 784,000 in May.

“My concern is the shortfall in building permits could suggest an upcoming decline in future construction, indicating some slowing is coming in the housing market,” predicts Leong.

“I still see numerous hurdles ahead for the housing market,” he says.

Leong thinks that a strong housing market is important, as homeowners buy new furnishings, including many big-ticket items.

“This is not happening, as home prices continue to decline, dragged down by continued high foreclosures and short sales where homes are dumped at below the mortgage value,” reports Leong.

The Profit Confidential contributor suggests homeowners will be hesitant to spend, seeing the evidence in the 0.5% decline in retail sales in June and 0.4% decline excluding autos.

“What all this means is while housing is improving, don’t get too excited and start buying up homebuilder stocks. In reality, I would be taking some money off the table,” concludes 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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