The inventory of unsold homes increased 2.8% to 11.1 months supply. The normal inventory is close to 4 months. The housing debacle has a long way to go before reaching a healthy balance of unsold homes.
The weakness of the housing sector will continue to have a negative effect on the economy. This is the bad news. The good news is that the weaker economy will keep commodities from rising and will eventually have a positive impact on inflation.
The current economic environment favors those asset classes benefiting from lower commodity prices.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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