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Economy

How Are Home Prices Affecting You?

July 29, 2008
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Housing prices dropped by the biggest rate ever in May, down 15.8% compared with a year ago, according to Standard & Poor’s/Case-Shiller 20-city index. The 10-city index dropped 16.9%, the steepest decline in its 21-year history. Nine cities posted records lows in May–Las Vegas, Miami, Phoenix, Los Angeles, San Diego, San Francisco, Seattle, Wash., Portland, Ore., and Washington, D.C., and the value of housing in Detroit is now lower than it was in 2000. Seven metros showed smaller annual declines–Tampa, Fla., Boston, Detroit, Minneapolis, New York, Dallas and Atlanta–a possible bright spot in the data. The city with the...

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Two Ways to Play It

July 28, 2008
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When everyone thinks alike, the market has a way of proving them wrong.  After all investors have bought, the sellers eventually take control.  After you’re #1, there’s only one way to go.  That’s one reason the dollar, which you might view as a proxy for the value of the U.S., is down.  It was previously perceived to be the most powerful currency on earth; in recent years its reputation has been in decline. But I’m firmly convinced the long-term trend of the U.S. economy–and thus the U.S. stock market–is still up, and that the market will reflect that by...

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A Little Relief at the Pump

July 25, 2008
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I went out at lunch today to get some gasoline before heading up to Lake Winnipesaukee in New Hampshire for the weekend and I got a very pleasant surprise. The per gallon price had dropped yet again to $3.91! This is down from $3.99 earlier in the week and about $4.12 at its peak in this area of Massachusetts. It’s sort of sad that a gallon of gasoline that costs $3.91 makes me so happy, but after watching the price skyrocket week after week (and sometimes day after day), it’s a welcome relief to see the price coming down....

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