Money Movement Strategy

Just now, I’m trying to explain why I made money in both Real Estate and the Stock Markets between the years 2000 and 2005, even though the economy didn’t really do much. So I did some research and I found charts showing the Dow Jones industrial average over the last 10 years. I also saw rate charts on Fed Funds and Real Estate home sales at the same time. When I compared the charts I found some interesting correlations between the current real estate market, the rate of fed funds and the stock market.

I saw that the last time the Real Estate market had a lot of inventory was in January of 1996. When I look at the Fed funds rate that year, it also went up between 4.75 and 5 percent and they are there now. exactly 10 years later. So if we look at the stock market at that time it also reacts in the same way today. With all this research, if you believe in the money movement strategy that outlines that wealthy investors move money between stocks, bonds, real estate and the money market. Where do you think the Stock market is heading? I have great confidence that we will see some very active stock market activity in the next 2 or 3 years.

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