TIC Report, a must read blog

There are many reasons to own real estate. For the past five years,
low interest rates has been a large incentive. Since October, 2011,
we have been telling you that interest rates have bottomed;
http://blog.fsbo.com/2011/10/ .
In January, 2013, we reiterated this with the main reason being
foreigners would stop buying our government debt;
In May 2013, we told you foreigners were slowing their
purchases of securities and increasing their purchases of  real estate;
In July 2013, we were pounding the table saying that
foreign buyers are changing their buying habits;
In September 2013, we explained why the Federal Reserve would
start slowing their purchases of our debt. They did give us a
head fake, but make no mistake, it will happen;
In September 2013, we also gave our 2014 Forecasts,
which absolutely talks about foreign investors changing their
buying habits;http://blog.fsbo.com/fsbo-forecasts-for-2014/
Now, the trend has started, see the chart below.
The TIC Report (Treasury International Capital report) provided
by the US Treasury Department, which measures foreign
purchases of U.S. financial assets, shows that foreign
investors are now Net Sellers of US Treasuries. Economic
improvement in Europe, US Government dysfunction with the
Federal Debt & Budget, and anticipating the Fed Taper are the
main reasons. Stay tuned for more info.
Net Foreign Purchases


Leave a Reply