8/24/07

The housing debacle will end in 2009-2010


Why?

Let's look at two previous episodes: 1978- 1982 and 1986-1990 (click on the chart to enlarge).

They show that when housing has a cyclical downswing, the decline lasts about four years.

The current housing contraction began in 2006. History tells us that the housing sector will have problems until 2009-2010.

This trend will have major implications for the economy and financial markets.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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