Last week was a very quiet trading week. Even so, the Market was down again!
New Homes sales hitting their lowest point since 1995, dropping 9%. Existing home sales in the Northwest were up, but the South, Northeast, and Midwest were down once again.
The last trading day of the year brought more bad news, and the Market started the week down 100 points.
That leaves Friday. Unemployment numbers come out on Friday. What will be in store for us on Friday? Lets look at the prospects. Unemployment the previous month was up 94,000. But that was 100% temp jobs for the Holiday sales. Retail sales were slow, so many of those who were hired on will be let go. 33,000 real jobs were eliminated in construction and manufacturing…not $6.00/hour jobs either. More brokerages laid off at the end of the year as well. Chances are, the numbers will not be good.
To this date, interestingly enough, the Dow has not returned to 14,000. For the year, the Nasdaq was up 9.8%, the Dow, 6.4%, the S&P 500 3.5%. The big winners were Gold, up 31%, Crude Oil, up 57% and Natural Gas up 19%. The big loser was the U.S. Dollar, down 8%.
What will happen in 2008, other than the Patriots potentially going for the whole enchilada in the Super Bowl.
The real estate market won’t recover right away. Indications are 2009. The only saving grace is that this is an election year. And candidates spend money during election years. 2 years ago more money was spent than ever before on an election and it wasn’t a presidential election. This should be the most expensive election ever!