The SaxMan Stock Market Report

Forty-five percent of all homes on the market are foreclosures, CNBC reported Monday.  The Case Shiller home price index, released Tuesday, revealed home prices fell 17.4 percent on a year over year basis.

Real estate deflation shows no signs of abating.  More loans will reset in the first quarter of 2009, risking further downside, especially in decimated markets, such as San Bernardino-Riverside, CA; Las Vegas, NV; and South Florida.

Retail analysts will anxiously watch consumer behavior on Black Friday.  Given low expectations, several national retailers will open stores midnight Friday, offering substantial discounts.  However, given continuing high foreclosure rates and consumer debt, discounts may not prevent a dismal holiday shopping season.

Wall Street’s three day rally continued in the Dow Jones Industrial Average and S&P 500, with the Nasdaq declining slightly.  Investors continue to be pleased with President-elect Barack Obama’s cabinet choices.  Tuesday, he announced Bush Administration Defense secretary Robert Gates would retain his position in the Obama Administration, to insure a carefully timed, smooth troop withdrawal from Iraq.

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