If you hang out in a gym long enough and push some weights, eventually, you can look at a set of barbells and decide if you can handle the weight. The power of observation combined with experience goes a long way.
When you look at a chart of historical data your observation skills are useful but a trend is not causal. There’s no way to know if next month, next quarter or next year will follow the same trend you’ve seen in the past.
That said, who knows what’s next for the economy. We’ve had a long run with good employment growth here in the San Francisco Bay Area. Home prices have pretty much recovered, as well. Outside of the Bay Area some regions in California have not fared as well. The Bay Area employment and home price trend lines are flat right now. It will be interesting to see whether they push up or down over the summer.
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