Dr. Housing Bubble 10/07/09

[Crewleader]

U.S. Dollar Index and Real Estate: Foreigners Buy Commercial Real Estate not run down Residential Properties. The March S&P 500 and USD Correlation. Phase Two of the Crisis.

You wouldn’t know it by listening to current headlines but the economy in March was inching closer and closer to its own zero bound. Since that time the market has put together one of the fiercest rallies in U.S. history. We would have to go back to the Great Depression to find a similar rally. There are wildcard factors at play right now. The U.S. dollar is inching closer to the lows of 2008. The stock market is getting closer to the pre-Lehman Brothers days. The U.S. Treasury and Federal Reserve have put together a ragtag package of bailouts that have no historical precedent. We should expect the unexpected in the path ahead.

One issue rarely talked about is how the weak dollar is going to impact foreigners buying real estate. For the most part, I’m not sure how much of an impact this will have on residential real estate. With commercial real estate we may see a good amount of buying if the dollar continues to get pounded. Yet it is important to look at what currencies make up the U.S. dollar index:



http://www.doctorhousingbubble.com/u-s-dollar-index-and-real-estate-foreigners-buy-commercial-real-estate-not-run-down-residential-properties-the-march-sp-500-and-usd-correlation-phase-two-of-the-crisis/

[David Zephyr]

1. K&R.

Interesting read. Thanks and hello! :hi:

[Crewleader]

2. Hi David, with the Doc, you too are one of my favorite Californian

:hi:

[girl gone mad]

3. Foreign investors are notorious for..

buying during the wrong part of the business cycle and being drawn to poor locations. My sister used to work with German investors and had to spend much of her time getting them out of really bad property deals.