The National Association of Realtors said Tuesday that sales of
existing homes in July dropped a record 27.2% from last year. This
was much worse than the 12% drop that many economists had expected,
and represents a 15-year low in existing home sales.
The announcement also comes with the usual amount of spin, as
Lawrence Yun, NAR (National Association of Realtors) chief
economist, was quoted as saying "Even with sales pausing for a few
months, annual sales are expected to reach 5 million in 2010
because of healthy activity in the first half of the year." This
reminds of the Monty Python scene where two knights were fighting
and one of them chops the other's arm off, and then asked him to
put down his sword and surrender, but the wounded knight refused
citing a "mere flesh wound." That was a hilarious skit, but the
spin from Lawrence Yun is certainly not amusing in my book.
Investors need to look at real estate as a place to raise their
family first and foremost, and then as a place where their money
could be parked with hopes that your principal investment can be
recovered upon a sale when you decide to move. To make things
clear, I do not consider real estate a viable investment!
We made some changes to our
"Recommended" Best Dividend Stocks List
earlier today, so be sure to check out the link below if you did
not read the e-mail alert we sent out earlier today to our
subscribers. We are continuing to monitor the other names on our
list and will make further moves if we see fit.
As for today's action, commodity plays pulled back after the
recent excitement regarding more deals in the space. Companies like
Freeport McMoran (
) , Massey Energy (
) , and Bucyrus International (
) all pushed lower. Also finishing in the red were well-known names
such as Boeing (
) , FedEx (
) , and State Street (
) just to name a few. Volume poked up on the selling with 4.43
Billion shares trading on the NYSE and 2.07 Billion shares traded
on the NASDAQ.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here