Dec 18 2007
NetGainRealEstate.com, the leading Internet provider of independent, value-added income property analysis, has completed an analysis of peak to peak market cycles going back to 1900. There are currently three viewpoints on the recession question. One says there will be no recession. Another says there will be a recession and it will be mild. The third says there will be a recession and it will be severe. Allen Cymrot, CEO and Founder of Net Gain, states, "A careful reading of historical data cuts through the confusion and gives purpose and meaning to the current state of economic affairs."
NetGain's study highlights the fact that the U.S. economy has always had recessions and has always gotten out of them. The economy is made up of actions and reactions. We live in free markets that buy, manufacture, invest, liquidate, hire, fire, etc. Because it is impossible to achieve economic balance between all of these activities, our economy will always be out of balance and therefore always cyclical. We are either going up, down, or sideways.
The report takes the next step of averaging historical business cycles and applying the result to the current economic cycle. The equation indicates that the U.S. economy is overdue for recession. NetGain advocates a strategy of staying power for the real estate investor, and provides a checklist of actions to address this stage of the business cycle. The complete report on market cycles and recession can be found in the Essays section of www.netgainrealestate.com.