So there's been a lot of talk about the supposed stock market "crash" yesterday and how it will affect real estate sales. So we're on the same page, we're not talking about a slight downturn in the markets. We're talking about the worst day since 9/11 where billions in currency was lost globally.
DID I CAUSE THE CRASH?
Since I'm horrible at picking stocks and always immediately lose money, it made me wonder if I'd purchased something on accident. I'm toying with a theory that any stock I buy will bomb the minute I make the purchase, but it looks like that wasn't one of the factors.
So what factors caused the crash? Don't make me cite sources because you'll learn that they all come from "some guy". I have links to legitimate sources in the bottom of this article, for people who value more factual information.
- The Drudge Report did it. The smart fellows at the Drudge Report told the world that Alan Greenspan commented during a speech in Hong Kong that a recession is coming later in the year. I'm not sure if the Drudge Report wields that much power, but I need them on my side.
- The Chinese market did it. The Chinese stock market dropped by 963 points, which is significant overall. One thing people have been afraid of is how reliant the U.S is on other markets. If they crash, we can crash. I can see how this can happen, but can't say whether they had anything to do with each other.
- The Taliban did it. The Taliban is claiming they targeted Vice President Cheney in an attack. Other people are saying that he happened to be at a compound that happened to have been attacked. They claim many places in Afghanistan are attacked on a daily basis, which somehow doesn't make me feel better about the whole issue.
The only true, albeit smart-aleck, answer is that people sold stock more than they bought.
SO WHAT ABOUT REAL ESTATE?
The best real estate investors and buyers follow the basic rule that you BUY when prices are LOW and SELL when the market is HIGH. If real estate or stock prices decrease, the true investor will watch the dip and buy once it settles. Regardless, real estate shouldn't be affected by one bad day in the stock market. If there is a consistent trend and the federal reserve sees a recession is coming, interest rates may be lowered to spur spending.
By the way, even though "bubblettes" are bursting in some states, such as CA, AZ, and FL, but Texas has a stable economy.
Read the legitimate articles: Stock Crash, Chinese Stock Crash, Texas Economy.
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