Have you ever heard the saying "Red Sky in the Morning Sailor's take Warning"? Weather lore has been around since people needed to predict the weather and plan their activities. A red sunrise reflects the dust particles of a system that has just passed from the west. This indicates that a storm system may be moving to the east. If the morning sky is a deep fiery red, it means a high water content in the atmosphere. So, rain is on its way with lower pressure.
As a blue water fisherman and someone who spent his childhood and free time during his adult life on the Atlantic Ocean chasing game fish, I can tell you red sky in the morning will make for a bumpy challenging day.
Although I have spent years perfecting my fishing skills and perfecting my ability to hook the elusive Wahoo and Marlin, I have spent the last 25 years understanding the equally elusive economy and the cycles we experience from time to time in the finance industry.
You may have read a previous article about my long range motorcycle trips and the rides I take to see important events in person. The reason for this is I have learned over the years that if you wait to read it in the press, you are the last one to find out.
Business cycles are a lot like fishing in that you have to pay attention to conditions and understand how the variables and indicators effect the mortgage industry. To be a good at fishing you have to understand the effect tides, moon phases, and water temperature have on different types fish and plan based on your interpretation of those variables. If you understand the cycles, you will catch fish. If you wait to read it in the press, the fish will be gone or already caught......
The Conclusion: The sky has been blue in the morning for the past six months in Georgia. It was blue sporadically throughout 2011; however, we could not keep certain political events from creating a red sky periodically. The correlation between fishing and the mortgage industry is both require you to understand the cycles and have the skill to interpret the variables and indicators. If you hone this skill, you will catch more fish and be prepared with great service to close more deals.
Catalyst for this article: This morning I read an article on http://www.cnbc.com/id/47451297 about the reduction in housing inventory and foreclosures on CNBC. Southeast Mortgage came to that conclusion 6 months ago based on internal proprietary data, market indicator trends, and many rides through our wonderful state noticing the lack of for sale signs and increasing number of sold signs. Never wait for someone to bring a fish back to the dock and hand it to you. Ask them when, where, and how they caught it and feed yourself for life.