Gary's Blog

Friday, January 15, 2010

Fed Survey- Good News

The survey of the Federal Reserve's twelve regions painted a picture of a growing economy. Ten of the Fed's 12 regions reported that activity had increased or conditions had improved. The remaining two- Philadelphia and Richmond- described economic conditions as mixed. In the Fed's previous survey one month ago, eight regions said activity had increased, or conditions improved.

This helped lift the DJIA again.

The survey also found the manufacturing activity increased or held steady in most Fed regions.

To sustain the recovery, the Fed is expected to leave the key bank lending rate at the record low near zero when it meets next on 1/26-27.

The housing market is healing, though most sales involved lower-priced homes. And in most parts of the country, home building stayed at low levels.

What does that mean? With still growing U.S. population, we should be seeing housing shortages in years to come.

One of my prospective clients quoted some wise words recently: "If you invest in the stock market, you live like a king and die like a pauper. If you invest in real estate, you live like a pauper, and die like a king!"

I resemble that remark!!

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