National: Upcoming Wall Street expectations

NEW YORK (MarketWatch) -- U.S. stocks will continue to fall next week, in continuation of a sell-off that saw the Dow Jones Industrial Average experience its worst week in over four years, due to nervousness that the easy-money binge of the last few years has come to an end.

Another heavy week of earnings, including 99 reports from S&P 500 companies, capped by the all-important July employment report on Friday, also awaits investors.

But stocks will remain vulnerable to any new signs of distress from hedge funds hit by their exposure to bad U.S. home loans, as well as from credit markets, where Wall Street firms and corporations are finding it harder and harder to obtain financing.

"We're finishing up earnings season and the general tone has been positive," said Owen Fitzpatrick, head of the U.S. equities group at Deutsche Bank. "But it's been overwhelmed by the whole subprime and credit-market issues."

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Sacramento: Regional 2Q Industrial Report

Every quarter we receive market statistics for regions around the country from CBC and other competing national brokers. Colliers International has office in both Sacramento and Roseville, as well as covering the greater Sacramento Region. Click on the link to view their Sacramento Industrial Trends Report for the second quarter of 2007.

National: Market Cycles & Income-producing Real Estate

Number Of Months From Peak-To-Peak of Each Business Cycle Since 1900

Information Source: Nat’l Bureau of Economic Research, Inc.

An investor needs three pieces of information for developing a reasonable investment strategy and the chart provides this information: (1) The average length of time from peak-to-peak for the prior twenty-one cycles is 58 months. (2) The current business peak was reached in March 2001. (3) We are presently 68 months into the current cycle. What have we concluded so far?

• Given the country’s current economic model, the economy is cyclical.
• Bull markets don’t last forever.
• Recessions don’t last forever.
• The average cycle for the past 100 years from peak-to-peak is 58 months.
• The peak for the current cycle was March 2001.
• We are 68 months into the current cycle.

This information gives an investor the next possible peak and the length of time needed for the subsequent peak. The average is 58 months. The shortest peak-to-peak business cycle is 17 months and the longest is 128 months. Given those conclusions, the real estate investor has to follow a sound investment strategy which includes techniques that insure staying power.

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Watch List (July 8-14): Small Markets vs. Large

Article from the CoStar group with information on the home price decline in markets throughout the country.