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at least show signs of life and a plateau that could begin rising if the newly elected president and congress make the right early moves.

Long term improvements in the economy will require more than the elections, of course. Both McCain and Obama have plans for change, and change alone may be enough. However, major areas of government policy will need to be addressed, and from what I've read here, outside of the U.S., it seems that both candidates recognize this fact.

First, deficit spending has to stop. The war in Iraq drains U.S. resources, and this fact needs to be addressed. Bush has hid his head in the sand, continuing to argue for less income into the government while increasing spending, particularly with the war. Whether the policy decreases spending or increases income, or, more pragmatically, both, a policy that drives forcefully toward a balanced budget for the government will help resolve many of the problems with the economy. Again, while they may disagree as to the strategy, both candidates seem headed in this direction.

If the likely optimism after the elections is followed upon with responsible fiscal policy (yes, this probably means higher taxes in the short term) that balances the budget, then the real estate market should move from plateau to rising again. Although I own property and would benefit from a sharp rise, I'd prefer to see a gentle rise that sustains itself into the real long term-many years out. If that is the case, I might consider continuing to hold my property, rather than to sell it when I can once again afford to do so.

In the meantime, if I had the means, I would invest now, cautiously. If the market continues to fall, I would make small investments, but during any plateau I would increase those investments. Once the market started rising, I would hold at the increased amount, reassessing periodically. However, I haven't won any lotteries of late, and most of my investments remain in diversified mutual funds through retirement plans. Plus, of course, I have my house, which equals more than my current retirement plan funds. So, I really do hope that my optimism is well founded.

Learn more about this author, Michael Deqel.
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