An update! Most of the content of this website was created and posted during the third and fourth quarter 2005. What I forecast one year ago is beginning to unfold.  This site is designed to help traders 
who listen to sound counsel and apply the ideas shared to benefit  themselves and 
their families from the impending decline in housing all around the world.

Richard V Rueb, Editor

John Maudlin and Gary Shilling provide an excellent UPDATE to my forecast.
Read their insights published in their November 17, 2006 letter
"The Coming Collapse in Housing" containing complete statistics and charts.

Don't Let the BuilderBubble Burglar 
Steal Your Wealth...
If you own a home, you’ve done well over this 1st half decade!
To learn how to protect this new found wealth  
into the next decade, read on…
by Richard V Rueb

DON’T let the Builder Bubble Burglar zap your home equity. Values are starting to decline and will continue lower… Do you know how to protect your equity? We describe the condition and offer alternatives.

Ninety percent of what’s written by the media about the financial markets is history.  But history is valuable because it’s the basis of future predictions and forecasting is the essence of making the right moves with good timing. This is about what you can do to plan your financial future and benefit from the BuilderBubble predicament… rather than being damaged by it.  Far too many pundits say there is NO bubble. They are wrong and I will try to prove it!

·          Wrong because recent Government Reports indicate a significant decline in new home sales.  

·          Home prices appreciated 65% between 2002 & 2005 doubling in some areas… too much too fast!

·          Newly constructed unsold homes swelled to nearly half a million units nationwide, largest since 1996.

·          Up to now there has been no easy way to hedge home values.

But now there is a new real estate futures contract traded on the commodities exchange.   This new real estate futures This new real estate futures contract stems from the sheer size of residential homes as an asset class.  Setting at nearly $20 trillion, this asset class, for the first time ever, engulfs domestic equities at only $15 trillion in  the U.S. stock market. The new future contract will not be a total solution to equity protection because complexity will make it difficult for the average homeowner to manage.  Professional assistance may be needed. 

Modern Americans are complacent… enjoying the ‘good life’ with the fastest and highest home appreciation in world history. There are a couple old sayings that apply: [1] Fools and their money are soon parted. But we’re no fools! We’re thinkers!  Complacency is like being [2] fat, dumb and happy! [Fat = have equity; dumb = not sure how to protect it; happy… have the problem.]  But… it's hard to be happy when we’re wringing our hands about how to manage our wealth.

When will the decline affect us? Now!  Will the up-trend of this first half-decade continue?  Regardless of what either you or I think, we need to act!  Ask this question:

“How do we protect our home from the Builder Bubble Burglar?” 

Ordinary consumers are used to earning 5% returns.  That’s not enough! Double-digit returns are required to protect home equity swelled to current levels.  Why? How?  Higher annual returns are possible…  So, read on

So, here’s a place to start… Click ALL the links to get the rest of the story...

Click the Printer Friendly Version of the Builder Story. Print it and throw it in the back seat of your car or put it by your easy chair for easy reading when you're relaxed to  absorb and analyze.

 

 

 


Disclosure