A storm is brewing. The final quarter of 2015 could be negative. Likewise, the first quarter of 2016 could also be negative, which would mean we are in the midst of a recession. Thinking short term, I’m pessimistic in regards to the state of economy. However, I am bullish for the end of 2016; we could see a strong recovery. Certain great companies in the stock market are at 20 year lows, which means the recovery has been very weak thus far. We need many changes now to get the economy moving.
The real estate business could be in a deflationary phase, just like other commodities. Deflation is very bad for the economy. It could take awhile to recover from. The stock market is negative as of December 20, 2015 for the year. However, the market is anticipating 6 to 9 months ahead of what is happening. One company that I like for 2016 is Macy’s because they’re very rich on prime real estate properties. They also pay a 4% dividend.
Covered Calls could be a strategy to use in the next 6 months. Good companies with good management who pay good dividends should be bought.