It is that time of year when we try to keep a cheery face and gentle demeanor. Yes, at last the elections are over and we can get back to work. Or hadn't you noticed? There has been an exchange however from political ads to shopping ads, which can also a bit wearing on the eyes and ears. Not to mention the pocketbook.
You might have noticed that housing sales have been steadily rising over the past several years, to the point where we could soon get back to where we were before the huge spike in prices. I believe most of us are giving sigh of relief as we have gotten accustomed to the idea that our homes were our best investments. It just goes to show you that there's little in this world we can truly rely on without constant diligence. We hope there is time to recover lest we take a loss. Let's keep a sharp eye on prices. If we get the inflation I'm expecting over the coming years, we will see house prices expand beyond where we reached last time.
Interest rates have been kept very low and will stay that way until the Fed decides that it is time to raise them. Once they start up they will continue until such time as the Fed decides it's time to slow down the economy as was done in the late '70s. How long will this take? Many years I'm sure. But get ready because as we know so well, time goes by so quickly that unless we are paying attention now it will be too late to take any of the advantages to cash in on when inflation gets too high.
Can you guess where I'm going with that? Hint: silver and gold. The best way to take advantage (and by the way keep up with inflated dollars) will be to own silver and gold as well as other commodities, investments which are priced based on supply and demand (econ 101), and you will know the best time to sell those are at their peak. And that will take years. But how happy you will be to have held on to them. After all, investing is supposed to be making money not just watching it go up and down. Farmers do not plant corn to leave it in the field. A time to sow, and a time to reap.
The general mood in the markets is similar to the anticipation one has when we get up in the morning and wonder what's going to happen that day. We have plans, but are not sure of how the plans will work out. A dilemma of the first degree.
However, since we need to have a plan, plan on what you would like to see happen and more than likely if the plan is at all reasonable it stands a chance to come true. The point is this: there are tons of cash just waiting to enter into the markets, trillions and trillions of dollars being held by banks, corporations, and individuals just waiting to find out whether or not there will be a fiscal cliff (or I would rather liken it to a wall, or an obstacle to overcome), which allegedly will ruin us all.
If we can get our elected officials to work it out, and investors are satisfied that we can move on, the markets could hold great expansion over the next several years. Be ready for it. As all that pent-up demand is let out of its cage, things will look mighty rosy. Prepare.
Something to look forward to will be millions of people back to work. Pride will fill their minds and bodies as they bring home paychecks. They will buy the things they need and some they don't, they will build their homes, buy their cars, put their kids through school and college, they will play and have fun. Let's look forward to those days to return, to the memories many of us have.
I hope your Thanksgiving was fruitful and the days coming in December are not too snowy, but just right.
Until next time, happy holidays to all.