Friday, January 27, 2006

Economic Report: U.S. GDP slows to 1.1% annual rate in fourth quarter - Bond Market - Economy

A slow down in the US economy bodes well for low interest rates. This is good news for many industries, including housing.

The real estate bubble never popped. Some air was let out of the balloon but lower interest rates will heat the balloon air and cause the balloon to rise again. The market is ripe for a strong up-move. The decline in economic growth will cause many to worry too much. The proverbial wall of worry is pretty much in place. The market will climb this wall in fits and starts over the next year or more.