by Puru Saxena, Gold Seek:
BIG PICTURE – Monetary policy remains accomodative and housing is rebounding in the developed world. Consequently, business activity is improving and this is being reflected in the related stock markets.
You will recall that approximately 2 years ago, we observed that the housing markets of Europe and the US were bottoming out and at that time, we stated that a boom in this sector would be a major positive catalyst for the developed world. Back then, most market participants were pessimistic, but raw data was indicating some improvement in housing.
As it turns out, our assessment was correct and over the past 2 years, property prices have risen and the construction industry has assisted in bringing down the elevated unemployment rates in the developed world.
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