Wednesday, March 01, 2006

Sales of Existing Homes Near 2-Year Low; Consumer Confidence Ebbs

The markets have shown strength today on the back of softer oil prices and the remarkable American consumer that can not stop spending. Despite that with existing home sales showing weakness again and confidence slipping I remain in the bear camp for April - Dec 2006.

Sales of Existing Homes Near 2-Year Low; Consumer Confidence Ebbs - NY Times

"Taken together, the figures suggested that the economy, while strong today, may be poised for a slowdown in the second half of the year, especially if the Federal Reserve continues increasing short-term interest rates to keep inflation in check, analysts said."

Hmmm, a weaker economy coupled with rising rates to fight inflation -- sounds familiar.

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