After gathering to discuss the housing market with Ed Pinto; Josh Rosner; and Chris Whalen, Cumberland Advisors Chairman and Chief Investment Officer David Kotok, writes:

The takeaway for the economic outlook on the other hand, was a sobering counterpoint to the pleasures of our gathering: slow rather than robust growth coupled with low interest rates, and for a long time. As we have said repeatedly, we expect low rates for at least several more years. They are bullish for asset classes over time, and rising asset prices are good for investors.

In the real economy on Main Street, the circumstances are different. If you want to buy a house in the U.S. and you need a conventional mortgage, and if you are not a speculator and want to live in dwelling, your costs have now risen substantially.