For most people, Friday’s just the day before the weekend.
But in the Wall Street Daily Nation, it’s the day we ditch the longwinded analysis and let some graphics talk for us.
After all, a picture is supposed to be worth a thousand words, right?
This week, we’re serving up a Limbo edition, profiling the increasing ability of both the euro and Facebook’s (Nasdaq: FB) newborn stock to keep heading lower and lower.
I’m also sharing (gasp) disappointing real estate data. Is it time for me to eat crow for predicting the real estate market hit rock bottom? Hardly. Read on to find out why…
How Low Can the Euro Go?
The eurozone’s falling apart. And the value of the euro keeps slip, slip, sliding away.
On Thursday, the beleaguered currency hit a fresh two-year low versus the U.S. dollar at $1.2368.
Yes, folks, this is the currency that’s supposed to replace the U.S. dollar as the reserve currency of the world. Or not!
What’s the next stop for the euro? Nobody knows for sure. But I’ll bet you its lower. Only a few more pennies and we take out the lows hit in 2010.
Bottom line: Currencies are a relative game. And right now the U.S. dollar is looking mighty again, even if it’s not on its own merits. But I’ll take it.
How Low Can Facebook Go?
Before it was popular, I was trashing Facebook’s IPO. And guess what? The sweet taste of vindication keeps getting sweeter with every tick lower for the social networking giant.
Of course, the blame game is in full effect on Wall Street and Main Street. Forget about wasting time pointing fingers, though. Let’s instead put a finger on what the Wall Street Daily Nation thinks is the Facebook’s next resting point.
$20… $15… $10? Send us an email with your bold predictions to email@example.com.
Bottom line: Facebook is nothing more than an advertising company. And a bad one at that, based on General Motors’ (NYSE: GM) recent decision to stop paying for Facebook ads. Prepare for even lower prices still.
Eat Crow? Never!
Unlike many stubborn analysts, I have no problem admitting when I’m wrong.
A boatload of readers wants me to do just that when it comes to my February prediction that the real estate market hit rock bottom. Especially after Wednesday’s pending home sales report.
The National Association of Realtors revealed its Pending Homes Sales Index (PHSI) dropped 5.5% on a seasonally adjusted basis in April. So clearly the market can’t be recovering, according to the diehard real estate bears.
Silly rabbits! Trix are for kids. And recoveries are always uneven. So let’s not mistake a little lumpiness in the data as a full-blown reversal.
Fact is, the PHSI is up 14.4% year-over-year. And other real estate stats are improving year-over-year, as well. Like foreclosures.
On Wednesday, CoreLogic reported that there were 66,000 completed foreclosures in April, a 15.3% drop from April 2011.
Bottom line: As I said last week – and the chart above reveals – the real estate data keeps “moving from bad to less bad, which is a clear sign of a market bottom.” So there will be no eating crow here, thank you very much.
That’s it for today. Before you sign off, do us a favor. Let us know what you think about this weekly column – or any of our recent work at Wall Street Daily – by sending an email to firstname.lastname@example.org, leaving a comment on our website, or catching us on Facebook or Google+.
Ahead of the tape,