Recent studies on consumer confidence reveal that many Americans have shown a renewed interest in the capital markets once again. The strength and recent stability of the Dow Jones Industrial Average has fueled this renewed interest in keeping investable assets liquid while maintaining the need for growth net of taxes and inflation

In recent years, investors have been able to celebrate positive returns as the capital markets have been working out of one of the greatest market collapses of all time in the year 2000 where many investors saw their life savings nearly cut in half.

The recent years of recovery have been good not only for portfolio values, but perhaps more importantly, investor confidence has been given new life as we enter 2007

Today, on the heels of the most unprecedented boom that we will likely ever see again in Real Estate, there are still many investors who will enjoy re-investing their proceeds from the success they had during the brief, unsustainable and artificially inflated residential Real Estate bubble

There were many homeowners with a relatively low cost basis who were fortunate to be the first to sell when they saw the "overnight" run up in prices. These were the winners in all of this

Of course, the flip side to this scenario is for all of those unfortunate speculators who jumped in and were happy to be the third or fourth buyers of a property in six months.

Aside from the speculators "bleeding money" to maintain their "investment properties," there are still many who cashed out and have liquid, investable assets.

With new levels of liquidity flowing into the markets, we may just begin to get a glimpse of what lies ahead for 2007

Ben Bernanke has shown cautious optimism with regards to the direction of interest rates. slowing of rate increases combined with additional liquidity flowing into the market could be very positive news

This confluence of new liquidity flowing into the market, combined with a new level of comfort on the part of the Fed and "Bernanke's Boys," could create a very positive market condition, at the very least during the short-term.

   Full article at zwire.com

Underlying fundamentals really seem to be leaning towards investor's favor as we ease into 2007