Jun

6

Kona, Hawaii is a small town and usually lags behind the rest of the country in booms and busts. We've had a bad bust here the last few years, but this month was the best month ever for tourism numbers and spending. Looking around the little town is bustling. The increased population is evident in a wider divergence of classes of tourist is notable in more bums and pan handlers who tend to stick out. This leads to the broader conclusion that despite the problems in EU and issues being harped on in news, there is a recovery occurring. I even had an employed carpenter trying to rent. He was one of over 20 applicants at a 20% higher rent for a unit I had trouble renting a few years back.

When the market was touching negative territory last week, it didn't sound right that the year would end up negative. The president and other flexions have too much to lose at this juncture to let it go negative. Plus, there was all the public who bought the spring bull run all going underwater getting cleared out.


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3 Comments so far

  1. Justpassingthrough on June 7, 2012 12:27 am

    Mr. Sogi,

    Please excuse my ignorance in asking for some help with the term ‘flexion’. I’m recent to this site and have noticed the term on a few occasions. I’d be appreciative for a basic definition from yourself or any other knowledgeable reader willing to inform.

    I support the idea of a continuing recovery, but with a caveat. I posit that the final downdraft of what has been a lengthy bear market will occur within the next couple of years. Once this shakeout has been realized, I intend to invest heavily in equities. For now I gauge and on occasion place measured bets. I reserve the bulk of my capital for the darkest days. Come the gloom I plan to spend like a drunken sailor.

  2. Brendan Dornan on June 7, 2012 12:07 pm

    Mainstream media is often late. Part of the problem is government statistics are based on closes and thus, lagged. Many real estate markets are not just up, but booming. Seattle, Washington DC, Pal Alto, North Dakota, Miami, and San Francisco among them. Anecdotally, in NY, someone had their house on for one day and a bidding war erupted. Meanwhile, places in Conn were being snapped up too fast for them to get one, and they are concerned. One firm said their proprietary sales growth figures were up 20%, while inventories have sunk. Rents are also up strongly. Inflation is here.

  3. Farris on June 7, 2012 7:19 pm

    Hey,

    Stay away from Hawaii. Fukushima’s uglies are going to affect that area for decades to come.

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