The overall residential real estate market is definitely slowing down. You cannot compare apartments with residential real estate. It is necessary to judge each one separately. It appears that the retail market is also in a slowdown. The last quarter of 2015 could fall into the minus territory, and the first quarter of 2016 may be negative as well. This would mean we are in a soft economy and recession. I am more optimistic in the second half of 2016 because I feel that a new administration could take over. There are so many banking restrictions on getting mortgages that it is simply unbelievable, which is definitely hurting the economy’s growth. The stock market could drop 5% in the first quarter of 2016 because of the slowdown in the economy.
The stocks that I have previously talked about on the blog seem to be holding the line. In my opinion, I feel that IBM is a good buy at these levels. It is possible that it could grow 30% in the next two years. I also believe Macy’s (M) could be a takeover opportunity in 2016.
Darden restaurants (DRI) is being recommended by many analysts because of a new REIT company which they formed. I am very skeptical of this company for future growth. It is not easy to form a REIT in today’s market.
Always remember that the stock market today is predicting 6 to 9 months ahead of what is going to happen.