The all time closing high of the S&P 500 was 2 years ago, when in October of 2007 it closed at 1565.  On Friday, October 9 2009, the S&P closed at 1071, 32% lower than the all time high just 2 years earlier.  HOWEVER … IT IS 58% HIGHER THAN THE 3/9/09 BEAR MARKET LOW CLOSE.

We are always looking to the positive or negative and this is no different as some individuals are still talking about the 2007 market.  We really can be thankful of the turn around since March, and the same is true with rates.  Everyone is talking about how easy it was to get a mortgage 2 years ago and the process was so much smoother.  Well today rates are at historic lows, there are still mortgage programs available and home prices are at the lowest point in years.  Did I mention if you are a first time buyer you get $8k just for buying a home that in several cases can be purchased with no money down?

I leave you with some words from Warren Buffett “be fearful when others are greedy and be greedy when others are fearful”.

Photo from kjarrett on Flickr.

_______________________________________________________________

Brandon is a branch partner at Alcova Mortgage.  He enjoys doing his taxes, firewalking and competitive eating, but not necessarily in that order.  You can reach him at brandon@alcovamortgage.com, or 877-552-7150.