Taking Advantage of Reactive Markets
2008-03-18 17:33:09
The financial markets and the US government are reactive in nature.
This means both the financial market and US government react to bad decisions made from prior periods. Bear Sterns collapse is one example of the reactive nature of the US government and US financial markets. Bear Sterns ran into trouble months ago, before the whole crises, but only recently do the results of this crises show on the market at large.
What does this mean to the rest of us? This means the more the financial markets and US government seem to be in crises, the more biased the housing market becomes toward a prospective buyer.
By becoming proactive when one is looking for opportunities, you can take advantage of the time of crises to find a bargain. In other words, now is a good time to start looking for that dream home.