What a wild ride on Wall Street last week. All of 2010 gains were temporarily wiped out and after a roller coaster couple of days the Dow is gaining back what was lost. At one point a 30 year mortgage was in the neighborhood of 4.5% as money fleeing from EU risk came pouring into US Treasuries. An EU bailout has caused the dollar to fall again today 5/10 which is good for the stock market.
The Real Estate market continues to show strength. Below is a great link to see just how strongly the housing market has come back in silicon valley. http://www.burbed.com/2010/04/25/silicon-valley-median-home-price-rises-29-percent/ Median prices have risen by 29%. Likely there are a few contributing factors. The expiration of the first time home buyers tax credit brought a lot of buyers into the market. Historically low interests rates continue to be a big incentive to buyers. The truth of the matter is that compared with a year ago those who are still employed are far less afraid of losing their jobs than they were a year ago, especially in here in Silicon Valley. In Silicon Valley companies are financially healthy and making a lot of money. Many including Apple have announced fabulous earnings which gives confidence to those who are employed. In fact, tech is hiring again which will only continue to build strength in the market.
Have a great Monday!
From the desk of Zach Trailer.
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