The Recession Ended in June 2009

   According to the National Bureau of Economic Research (NBER), the recession that began in December 2007 came to a conclusion in June 2009. The recession lasted 18 months which made it the lengthiest economic pullback in the United States since World War II. Although the recession's over, its effects and influences are still hanging over the economy as evidenced by the high unemployment rate, lackluster real estate market, and the rising stock market.

   "What? What did you say about the stock market," cried someone from the crowd. Well, it's true. The market's been on a tear since the summer of 2009 and it's going to go higher. It's like the market knew exactly when the recession had ended and started to kick itself into first gear, second gear, and soon third gear.

   It's too bad then that the average citizen is too scared of the market to put big money into mutual funds or ETFs. The beneficiaries of the coming stock market boom will be the rich, the rich, and the rich. Joe Sixpack is too busy trying to mine 1% interest from a money market fund or a bond fund to step into the market anytime soon. In my opinion, by the time Joe Sixpack steps back into the market, he'll be paying top notch prices and the newspapers will be crowing about how to get rich in the market. Maybe there'll be another book about DOW 30,000 and how it's different this time. That's when I get bearish and bet accordingly. Until then however, the market is swinging higher... without Joe Sixpack on board.

House Prices Are Still 10% Too High, Says Barry Ritholtz

   Barry, be honest and tell everyone that house prices are 20% too high. Maybe even 30% too high. Who's to say what's too high anyway? In the middle of a market crash, what's a stock like Pfizer (PFE) worth? Some sellers are willing to get out at any cost so figure $8 on the low end. Sure, it makes no sense but when prices are crashing through the floor, some people would prefer $8 than the possibility of $4. Others won't sell at anything below $20 while another portion of the investing public are happy with $15. This is what makes a market and what causes people to buy when others are selling.

If Barry won't say it, I'll say it. Housing prices are 20% too high. If the economy creeps along for another decade or so, Housing prices are 30% too high at this point. Anyone who's capable of buying now and acting on that impulse is trying to catch a falling knife. That's my opinion and I'm sticking by it. Link to the article below:

House Prices Are Still 10% Too High, Says Barry Ritholtz
http://finance.yahoo.com/tech-ticker/house-prices-are-still-10-too-high-says-barry-ritholtz-535388.html?tickers=&sec=topStories&pos=2&asset=&ccode=
Money-manager Barry Ritholtz has a message for the National Association of Realtors, the trade group that always puts a sunny spin on the outlook for the housing market, no matter how horrific the facts may be:
You're making the problem

Ritholtz, who runs Fusion IQ and writes The Big Picture blog, says that the NAR's happy spin is making homeowners too optimistic about the prices they'll be able to get--thus encouraging them to price their houses too high.