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Dow Closes About 19,000

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Meandering

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State
Pennsylvania
U.S. equities closed higher on Tuesday, hitting new all-time highs, as investors digested housing data

The Dow Jones industrial average rose about 70 points, closing above 19,0for the first time ever.

The S&P 500 closed over 2,200 for the first time


"Global equity markets are reacting positively to new all-time highs in the SPX," said Katie Stockton, chief technical strategist at BTIG, in a note. "Momentum is proving strong enough to overrule overbought conditions, so we think it is appropriate to be buying breakouts."

Phil Davis, CEO at PSW Investments, said it might be time to fade this rally, however. "It's like a rocket at the apex of its trajectory. When a rocket launches, it rises up quickly, then it slows down and gravity starts pulling back down, but it does hang there for a bit," he said.

Tuesday's record-setting session came a day after the three major indexes, along with the small-caps
Russell 2000, closed at all-time highs. Monday's rally was led by oil, which rose nearly 4 percent to lift energy stocks.
http://www.cnbc.com/2016/11/22/us-markets.html

How does that saying go?
Buy the rumor sell the news?

Hopefully, the proposed tax cuts happen and are not just rumors. Stock prices have just been amazing this week.

Have fun playing the market everyone.


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Randolph Kinney

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Retired Appraiser
State
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Those stock prices are propelled by the investors fleeing the bond market which means interest rates are going up from the selling pressure. Eventually, that will cause mortgage rates to move up as well. And we know what that means.

My neighbor would like to buy my house (he rents the house next door) but he may not qualify for a loan. If interest rates continue to go up, he is priced out of the market unless housing prices decline commensurate with affordability payments.

Enjoy the run while it lasts. :)
 

JTip

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Oct 12, 2004
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Certified Residential Appraiser
State
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Could be time to pick up a few 1/4 oz. gold coins.....us Residential folks can't afford the full blown oz.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Yup,

You are correct.

The Bond market tanked in a sell off.

The Fed has lost control of the economy.

If you're local market was part of the "recovery" in RE prices, it is about to take another hit.

Get your neighbor to get approved financing ASAP, or you'll lose money on that house and suffer the increased taxes you know are coming, as a consequence of trying to hold it for the next run up.

'Cause this time it will be different.

very different.

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JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
The ol' 457 plan will be liking this news. :)
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Get your neighbor to get approved financing ASAP, or you'll lose money on that house and suffer the increased taxes you know are coming, as a consequence of trying to hold it for the next run up.

He is working it. He is calling his bank this afternoon.
 

Eli

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Certified General Appraiser
State
Tennessee
I wonder how the people crying appraiser shortage on a national scale will handle this. I understand there are shortages in some markets due to AMCs regardless of what rates do.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Good.

Here,
We know the RE taxes have to go up, too much is unfunded pension and healthcare obligations when the ACA starts pulling back the Fed subsidies for the ACA.

Interest rates go up, and taxes go up, prices have to come down, and we weren't doing all that good to start with.

upload_2016-11-22_16-55-41.png

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Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I wonder how the people crying appraiser shortage on a national scale will handle this. I understand there are shortages in some markets due to AMCs regardless of what rates do.

Don't worry about any appraiser shortage.

The market will take care of that on it's own.

There may be an AMC shortage.

Keep track of those receivables.

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Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
Don't worry about any appraiser shortage.

The market will take care of that on it's own.

There may be an AMC shortage.

Keep track of those receivables.

.

I noticed JT said there is a push for big lenders to divest from their AMCs. That could be major, but I really haven't wrapped my head around that push or what she has based that statement on.

I can see where lenders could do better internally in many ways. I know they can with the right support and management.
 
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