Wednesday, September 19, 2007

Fed Cuts Rate Half Point, Wall Street Soars

September 19 2007: 7:24 AM EDT
NEW YORK ( -- U.S. stock futures were stronger Wednesday as investors continued to cheer a Federal Reserve cut aimed at restoring confidence in the financial markets. At 7:20 a.m. ET, stocks appeared poised to open higher and extend the previous day's big advance. The Dow Jones industrial averaged surged about
336 points, or 2.5 percent, on Tuesday after the Fed cut the target on a key interest rate by half of a percentage point. Many on Wall Street had expected the Fed to be more cautious and lower rates by just a quarter of a percentage point. The bigger-than-expected cut lifted sentiment, as it signaled the central bank is prepared to act in order to keep the mortgage meltdown and credit crunch from derailing the economy. Peter Cardillo, chief market economist, Avalon Partners, said that he believes that stocks still have some room to climb Wednesday, even after Tuesday's rally. He said the expiration of options on Friday will force those who had taken short positions that bet on a market decline to buy shares to cover those position. "It looks like the party might be extended today," said Cardillo. In global trade, Japan's benchmark Nikkei index jumped more than 3 percent on the Fed cut. Major markets in Europe rallied in morning trading.

Tuesday, September 18, 2007

Lehman wows Wall Street

September 18 2007: 9:55 AM EDT
NEW YORK ( -- Embattled investment bank Lehman Brothers surprised investors Tuesday by reporting better-than-expected earnings, allaying fears about the wallop that the mortgage crisis may inflict on Wall Street.
Lehman (Charts, Fortune 500) shares jumped more than 3 percent in pre-market trading on the news, after finishing 1.5 percent lower on the New York Stock Exchange on Monday.....U.S. stocks pushed forward at the start of trading Tuesday as investors considered inflation data and Lehman Brothers results while expecting the Federal Reserve to cut interest rates.

Wednesday, September 12, 2007

Busy Buyers

Regardless of the not so positive stories in many media outlets, South Florida is currently a Buyer's Market and people purchasing properties are getting great deals. In the last two weeks we have had 5 closings with our savvy clients.

News: Foreign buyers may help housing market

NORTH PALM BEACH, Fla. – Sept. 7, 2007 – Looking for a ray of sunshine in today’s overcast housing market? Here’s one: Foreign buyers still want a piece of the American dream.In fact, it’s somewhat ironic that immigration has become a key domestic debate in the lumbering 2008 presidential campaign. Foreign-born buyers have not only contributed substantially to the growth of the U.S. housing sector but continue to help soften the landing as the market wobbles to correct itself. According to the 2007 “State of the Nation’s Housing” report from Harvard University’s Joint Center for Housing Studies, the percentage of foreign-born buyers that contributed to net household formations, previously 15 percent in the 1980s and nearly 30 percent in the 1990s, grew to 40 percent between 2000 and 2005. They’re coming to America all right, at a rate of 1.2 million net immigrants annually since 2000.

A record 12 million additional immigrants are expected to arrive between 2005 and 2015. “Basically, this country’s household growth depends on foreign-born households,” says Zhu Xiao Di, senior research analyst for the center. Little wonder, then, that during the last 12 months, one in three Realtors worked with an international client or prospect and nearly one in five sold a home to a foreign buyer, according to the “2007 National Association of Realtors Profile of International Home Buying Activity” released July 30.

Those numbers are likely to grow as foreign investors, bolstered by favorable exchange rates, take advantage of the cooling U.S. housing market to snatch up great deals on vacation homes, particularly in Florida, California and New England.
(c) 2007