SHREVEPORT, La., March 26, 2007 (PRIME NEWSWIRE) -- Wall Street Maverick, Don Harrold says investors should not have been surprised by today's housing data.
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"This morning, 'investors' 'awaited' 'data' 'that could help' 'indicate' whether a 'downturn' in the housing market 'will' 'undermine' 'overall' 'economic growth'. The data was released and, 'surprise', housing starts in February were dismal," says Mr. Harrold.
"I placed quotation marks purposefully around each of those words above. Each of the words I placed in quotation marks needs to be defined and, more important, explained," adds Mr. Harrold.
"If an 'investor' needed to 'await' 'data' 'that could help' 'indicate' whether a 'downturn' in the housing market 'will' 'undermine' 'overall' 'economic growth', that 'investor' must not be looking very carefully at the current state of the U.S. economy," suggests the maverick investor.
"Investors should ask, 'What if subprime had not begun the meltdown process last year?' What if 2006 was a stellar year for home sales, inventories of new homes dropped, and home prices rose? The news would be about the 'strong', 'robust' economy. Investors would hear about the 'greatest story never told'. They'd hear about the 'goldilocks economy'. They'd hear about how it was a great time to buy stocks for 'the long term'. They'd hear about how Bernanke 'got it right'," says DonHarrold.net's founder.
"My point is that there is no data to await. If an investor needs to be TOLD that the 'housing market' has affected the economy than they just don't get it. Astute investors should try to imagine the nightly cheerleading from the mainstream media they'd get if the 'housing market' were strong," states Mr. Harrold.
"The market is playing out just the way it should. Small investors continue to have an uphill climb. Mainstream 'wall street' continues to profit from those same small investors. The media and Federal Reserve are no help, either. The scarce data released with any value is worded so vaguely as to not be usable by serious investors," says Mr. Harrold.
"If investors want to beat the market, they must find ways to trade outside the usual channels. If investors continue to trade on the 'surprise' news on housing (for example), their portfolios will continue to decline," argues Mr. Harrold.
"And, not to my surprise," chortles the investing expert.
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