Ben’s Back, And So is Real Estate

When someone recently told us that the Obama administration would replace Federal Reserve Chief Ben Bernanke we almost all but laughed.

Our logic was simple, politics aside; if Obama had replaced Bernanke it would have sent a signal to the markets that we were on the wrong track and that our recovery was in question.

The markets don’t like change. They like predictability, and changing horses in mid-stream is about the worst possible scenario that we could thing of.

Pre-market futures looked positive at the prospect of Ben staying on, but it’ll be interesting to see what effect home prices will have on the markets for the remainder of the day.

Home prices climbed up slightly over last month, and their recovery may signal that the worst is behind us. This should bode well for REITs and many real estate based stocks like homebuilders.

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