The Media is Misreporting the Housing Turnaround Story - InvestingChannel

The Media is Misreporting the Housing Turnaround Story

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#1 WorkingPoor

WorkingPoor

Grizzly Bear

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Interests:I’m a Canadian living the simple life in Mexico. Instead of Sleepless in Seattle, I am Stuffless in Mexico. Oh, and I have been posting on bearish forums since 2000. I have been here before as CivilBear and PoorSoul.

Posted Today, 09:53 AM

Imagine that your financial advisor called you up one day and said:

“Great news…your investment portfolio gained 1% in January which is an annualized return of 12%. However, we have to subtract .05% from that return because historically January’s return has only been 0.95% since 1950. This brings our seasonally adjusted return to 11.4%.”

Of course, after the SEC pays a visit to the advisor to correct his performance reporting measures, the simple reality is that “what you see is what you get.”

While this example may seem a little farfetched – this is exactly what happens with a variety of economic reports that are released by various government agencies and member organization/lobby groups. The reasoning for such data manipulations is not a nefarious scheme; but rather an attempt to smooth what is normally very volatile data. This is particularly the case with housing related data….

Read more: http://www.streettal…l#ixzz2IoJeUhvh

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