Financial Markets In A Huge Shift


With the world’s financial markets in turmoil the question on everyone’s mind, are things going to get worse and when will we see this mess level off? Well no one knows this answer for sure but a good bet is things are still going to get worse before we see things turn around.

The finger pointing at the problem is pretty easy. The housing melt down has caused huge losses to Banks and Financial institutions. These losses are forcing many banks to restructure their bad debt or risk failure all together.  Several large banking institutions have sought out buyers to prevent bankruptcy while the government looks to see what can be done to prevent further meltdown.  This uncertainty has sent shock waves throughout the global financial system and caused huge down turns in stock markets around the globe.

With news like this, who wouldn’t be scared about the current outlook of the market? Well for those who know how to invest, this is possible one of the best markets to be in. When markets crash, people panic and withdraw to save what’s left of their investment.  People become irrational and lose sight of basic market fundamentals, often selling at bigger losses just to get out. It is at this point when the savvy investors jump in and take advantage of a changing market.

We are in such a market with housing. Banks and Sellers are in a mild panic and over reacting to the current market and selling homes at unheard of prices. Don’t be fooled to think that homes are not selling. Bank foreclosures are moving very quickly in the Central Orlando area as overseas buyers are picking them up at a very fast rate.  Most new foreclosure homes do not last out on the market very long as the affordability of these homes makes them very attractive for buyers.

Bottom line is to follow the smart money. During the boom years of the housing market, smart money pulled back and waited. Now we will see the smart money come back to pick up the pieces of the housing crises and pocket plenty of money while doing so.