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Why Realtors love an erratic stock market

September 23, 2008
span.jajahWrapper { font-size:1em; color:#B11196; text-decoration:underline; } a.jajahLink { color:#; text-decoration:none; } span.jajahInLink:hover { background-color:#B11196; }The last year has brought a lot of uncertainty in the real estate market. Where’s the bottom? Where’s it going?

When faced with uncertainty seasoned investors watch and buy when it makes sense. Novice investors wait until the market rebounds then try to get in with the rest of the herd.

While the investors wait for the real estate rebound they tend to put their money in the stock market to get a decent return.

These headlines:

Market Overview – Yahoo! Finance – The basics of investing.

The major indices were pummeled on Monday due to uncertainty over the details regarding the U.S. government’s $700 billion plan to fix the financial market turmoil and news that the two remaining major Wall Street investment banks converted to a traditional banking structure.

…typically are strong enough, and cause enough pain, to scare investors back out of the stock market and into real estate. That coupled with multiple offers on the low end of the market all work together for the real estate rebound.

So, stock market pain = realtor gain.

That’s why realtors love an erratic market.

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