November 3rd, 2009 
admin 
Last week the white house was going to review weather to keep or not keep the eight thousand dollar tax credit as being first time home buyers. All of a sudden today the program is to end on December 1st 2009. One of the main reasons for the halt of a program which is responsible for up to 50% of today’s new home buying is because of fraud. It turns out that people have been using their children’s identity info as a means to qualify as a first time home buyer. These are unemployed dirt bag pledge brokers no doubt. But it doesn’t stop in that place. Also among the scandalous which is uprising are IRS employee’session. That’s right, the IRS have had to do tons of internal investigations of it’s own employees new home purchases. So the average first time home buyer gets screwed.
What does this administration determine is going to happen to new home sales numbers after this program isn’t available next month? Historically December is the slowest time for starting anew home sales once a year so they are probably hoping the numbers will just mix in with the previous years sales figures.
What should be going through your head after reading this is, yes, home prices are about to go lower, which will effect new home construction, which in-turn direct send the dow straight down. Short the Dow! Short Caterpillar, Ingersol Rand , Commercial and Residential Construction Sectors. The stock market is going to crash, sorry. So either get out of it, or take advantage of it.
There are several ways to hedge your positions in the market. If you have a good broker, desire him if he knows about delta neutral positions. This is a procedure in which put options on the stock indexes via a are put in your account in order to protect you in the event of a fast overnight crash. The premiums of your options will be worth the amount of your market risk putting your account in Neutral. Or if your broker hasn’t taken that class, tell him you need to diversify into a bear market or ultra-bear market fund, again hedging your risk. There are also Exchange Traded Funds, ETF”s but those are for loosers, don’t waste your time. Tune in next week on the only way to save the U.S. dollar after it has been attacked by the white house.
Jonathan Keener
Similar Posts:
- The Toronto Condo Market
- What a Difference a Year Makes – A Look at Construction Unemployment From 2008 to 2009
- Hedging against market volatility
- Foreclosure Sales and Home Prices
- An Honest Review for ‘Beginners Guide To Stock Market Investing’
