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We believe that the U.S. economy hit bottom this summer and an economic recovery is underway. The economy is still weak and is vulnerable to a setback if there are any unexpected shocks. But if the economy has time to heal, then economic growth is likely expand at a modest pace during the next few years. The housing market appears to be turning upward but a housing recovery is likely to be uneven. Foreclosures are likely to increase along with the unemployment rate during the next year. Fortunately, housing is very affordable and reluctant buyers appear to be taking advantage of current opportunities.
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