The House That Paulson Built

"Obviously, it will go on beyond months with some of the issues in the housing market, but I believe we can get to the point within months where we turn the corner on housing," Paulson said in a televised interview with Fox Business Network.

This is the turn that must take place before a market recovery in financials and when we should be looking to get back in. The bad news that comes out hurts these companies unfailingly and the bad news will keep coming until we make it around the bend. The question is: How to spot stability in the housing market? We can look at foreclosure rates, new home purchases or a number of other indicative numbers but by that time it may be late in the game.

I think that the next significant drop in the market on bad news is the buying opportunity we have anticipated. I don't mean that the next day in the red will signify the proper re-entry point. Paulson even said that it will be a matter of months (and he is supposed to sound hopeful). So don't rush it, but the next terrible day on the Dow and I will be looking agressively for buying opportunities. This may not be this week or the next, but it is coming and coming soon.