New Home Sales - Lack Thereof

US New Home Sales number was the worst of all time at 308,000. Down 2.2% from January. The sales are down huge in Midwest as well as what people will call storm-hit areas in trying to find an excuse. The huge declines in the Midwest are a sign that their excuses are pointless and the housing market continues to be in the crapper.

Stock and fixed income markets as well as materials going up on a recovery of housing markets and economy overall are build on false hopes and false representations. There is a huge bubble in all of these markets and that bubble will eventually burst. This is starting to look more and more like the great depression when after the first big leg down markets had a huge run up on complacency and smoke-and-mirror effects only to crumble soon after. This happened several times until the stockmarket for example were down 90% from the peak. This I remind you was at a point when this country was a manufacturing economy and growing rapidly in real terms not in the made up terms of today’s growth (ie. There is no growth right now). Besides back then the US was a surplus economy and a creditor nation and a country with very low taxes. None of those hold true for today’s conditions, so hoping there will only be 90% decline in real terms could be wishful thinking. The only thing that will protect you from this all is arable land and gold and silver the latter two that are heavily manipulated down by none other than the Federal Reserve.

Do not get fooled by momentum trading as most of money managers of today are nothing but momentum following monkeys, which is brilliant, don’t get me wrong, but is not a long term strategy or an investment for the future as most of these people blow up at some point or another losing more money than they ever made for their investors. These people should be nothing more than a speculative investing of your portfolio and you should not go above 20% for such investments depending on how much money you have and what your intentions are.