Low Interest Rates, No More Fed Subsidies - Is this the Bottom

Timing should be left to the gods, but one must admit that local conditions are low and likely will not go much lower.  

Next Market FEAR Factor - CALIFORNIA?

The 8th largest economy in the world could mirror or even be a larger mess than the effect of the Mediteranean Club Busters.    To make things worse there is not IMF to force a correction or add liquidity given it is not a separate country.    The Feds might be forced into effect?    Just really hard to say.....    If California goes bust as evidenced by their credit rating, the austerity measures will reinforce the BEARS again.    Fear of the unknown would mirror what is already happening in Portugal, Italy, Ireland, Greece, and Spain (PIIGS).    If California goes bankrupt we should expect a large migration to Utah.    Therefore a positive for the local market.

Let me know your thoughts on the subject?

Read more on:
http://news.yahoo.com/s/ap/20100514/ap_on_bi_ge/us_california_budget

Investment Strategy - Switch Out of the Stock Market and Into Real Estate

Reason this strategy might make sense right NOW:

1. Stock seem toppy and might be headed lower.   See my other blog www.soloretirement.com
2. Interest rates are still low, but for how long.
3. Real estate will make a good investment in inflationary times.  If construction materials keep rising at some point the cost of existing real estate will increase as well given its components are becoming more valuable as a replacement.
4. I have heard hints that because of the HOUSING CRUNCH for the last few years - Housing stocks be be getting too low and there could be a housing shortage in 2011?   

Tax Credit Expiration Should Allow for Some Short Term Market Softness...

I am thinking that in the short term prices may be getting lower still as the federal tax incentives .    However, during this short term period interest rates could be expected to increase just depends on numerous factors.    Let me know your thoughts

When is the Market Low in Utah

If history is a guide it should be about two years after California. If this is the case we still have a wait ahead of us. This time feels different and faster. Any thoughts?