Yields on the Stock Market are volatile at best. Your Money Market account is receiving about a 1/4% interest. If you lock in a CD for 5 Years, today's rate is about 1.25%.
US Global Bonds are currently at a
low to negative yields. The 10 Year Treasury is at a +1.500 yield. Many major Corporate investments are showing a recent decline.
THE GLOBAL MARKET
The lack luster Global Market is weak at best. China's June 2016 Government Stimulus Plan has no positive exit strategy other than lets make the numbers look like we are not in a economic dive. Let's attract investors today and hand them the loss at the end of the day.
The Federal Federal Reserve Board by appearance has not figured out "Why" the Inflation Rate is at Depressionary Levels for the last three and a half years and is not rebounding.
The Near Future
There will be a normal increase in Production the second half of 2016, due to the preparation of products for Christmas orders. The USA economy is running at a Depression Level Inflation Rate average for 2015-2016 and is expected to continue to do so to the year end of 2016 as projected.
The Upside is, buy the market down to see a "Ride The Wave" potential positive Yield if any, but be prepared to take an unexpected loss without notice.
A FUTURE FINANCIAL OUTLOOK
There is no quick fix at this time. Important issues needed to be resolved years ago.
The Euro Investment Market in reality is just a Wall Street Bubble that propelled the Stock and Bond Markets from 2008 to 2015 with profits.
Cocurrently, the UK, Englands exit from the Euro Union is also in part a self preservation measure that appears to be needed to be taken because of the Euro economic forecasts from 2016 to 2020.
The current issues have been forecasted since 2012.The economic downturn we are experiencing today in the USA has been a known fact it could happen if the USA economy did not improve. The question was when?
REAL ESTATE MARKET
Upper end Homes are the only Emerging Growth Market in today's USA economy.
The upper end of the home buyer market is currently showing a +3.0% from $250,000 to $1,000,000, or more home value, for the first 6 months of 2016.
In comparison, the under $250,000 Home Purchase market is almost non existent.
|WHAT'S THE PROBLEM WITH
REAL ESTATE GROWTH?
USA ANNUAL INFLATION RATE
2016 + 1.1
2015 + 0.1
2014 + 1.6
2013 + 1.5
Inflation Rates 2013-2014-2015
US Bureau Of Labor Statistics
2016 is a 6 Month Average
from January through June.
Courtesy of RETV.News
REAL ESTATE FUTURES
The Federal Reserve Board meeting on July 26th and 27th 2016 concluded:
FED-FOMC Press Release Excerpt ~ The Federal Open Market Committee reaffirmed its "Statement on Longer-Run Goals and Monetary Policy Strategy,...
Following further Committee discussion regarding the most appropriate way to express this clarification, the statement has been amended to indicate that the "Committee would be concerned if inflation were running persistently above or below" its 2 percent objective.
he Benchmark for a Growing Economy in America is a Inflation Rate of +3.5%. The 2016 Annual Projection for the USA Inflation Rate is +1.1%. (with no standing Inventory)_
|USA AVERAGE HOME
QUICK QUALIFIER INFO
|Median Individual's Income
2016 - $30,349.
2000 - $28,408.
Estimated Average Family Income
2016 - $52,000
Home Average Price
5/2016 - $249,700.
Income to Qualify with 20% Down $4333.33 Month (or $52,000. Annual)
Loan Rate 3.5% 30 due in 30 Yrs.
Payment $897.01 a Mon26th
Taxes and Insurance $249.00
Other Debt $533.33
$1679.34 PITI and Debt per Mon27th
Underwriting Variance is estimated
upward at +2%
Cash Down Payment required is
estimated at $49,950. plus closing cost and cash reserves.
Red indicates a Potential Deficiency
Average Family Savings $9,966.00
Commercial 10 Yr. Fixed Due in 20 $6,000,000.
60 Day Delivery 30/30 YR.
HISTORY REPEATS ITSELF
Foreclosure Filings are Up and on track to reach the 1 Million 100 Thousand range for the 3rd straight year.
Foreclosure Filings in 2016 - 533,813
Foreclosure Filings in 2015 - 1,100,000
Foreclosure Filings in 2014 - 1,100,000
2016 is for January to June 30, 2016
Courtesy of Realty Track
Foreclosure Filings in 2004 - 640,000
Due to the Negative Yielding Euro Markets and the Depressionary USA Market as of 2015 and the first 6 months of 2016, all are expected to Over Produce or Indicate Increasing Production, in an attempt to show positive figures to attract more capital investment in a looser " buy down" to get a yield investor market.
Many Company's in the USA and Euro Markets who participate in the Stock and Bond Markets for a Future Yield "Cash from the Stock Market" do it for investment capital for their company's future or to just keep afloat. This usually shows up in a inflated Price to Earnings ratio calculation of the company.
With the diminishing returns on a company's investment, into the market, for example +1.0% or less yield in Stocks and Bonds, puts the Company's in a position where they have to attract more Capital from the Wall Street Investor.