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Is It Time To Sell

The economy may be in a long term slow growth mode, so selling now while rates and cap rates are low may be best.

By Joel Ross | Updated on February 10, 2014

The latest set of employment and economic statistics are unclear at best, and maybe not good at worst. Two months of weak new jobs statistics may or may not reflect a slowdown from the recovery. It is unclear because of the bad weather effect and the difference between ADP and the labor Department. U6 remains very high, but it is a tiny bit better. There is substantial anecdotal evidence that Obamacare is affecting hiring, but due to the constant revision of the law rules by Obama it is unclear if many companies are or are not keeping hours and hiring down as yet.  It is also clear there is no material inflation showing up and that is likely to continue as the economy here and in Europe remain weak.

On the positive side, the ten year has fallen substantially, in a surprise to many who projected a continued rise as it appeared last year the economy was improving and tapering was starting. Maybe the bond market, a somewhat good predictor of the economy, is confirming that the economy is really slowing again. The stock market seems to be saying the same, but it is not a good predictor of economic results.

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