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Home Sales are Down - Do Something About It |
| Housing sales data and home price trends are some of the most important economic indicators available. Today's home sales numbers are a great example of the kind of impact this data can have on the financial markets. The report showed the first monthly decline in sales after 4 months of consecutive increases. The Dow Jones Industrial Average (.DJI) and the S&P 500 (.INX) were both down on the news while the dollar was climbing. | | | | | |
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Essential Reading for Traders
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| | | | | The housing market is important in the U.S. because it is the largest and most significant source of liquidity and wealth for the American people. Falling home prices accompany falling consumer spending and significant disruptions in the home mortgage market has been one of the prime movers behind the current financial crisis. However, U.S. consumers and home owners do not have to just sit back and watch the market move without doing something to take advantage of it. There are some great ways to speculate on rising or falling home prices within the stock market. For example, real estate ETFs often offer some of the highest dividend yields available, home building stocks can be big winners for options traders and there are new investment products available that can be used to hedge home prices directly. You can learn more about these strategies through the links below.
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