The Retired Investor: Housing HeadwindsBy Bill Schmick, 04:27PM / Thursday, March 31, 2022 | |
The red-hot housing markets is cooling off. A combination of higher interest rates and supply chain shortages are squeezing homebuyers. If these trends continue, the spring selling season may find buyers between a rock and a hard place.
The total value of the private residential real estate in the U.S. increased by a record $6.9 trillion to $43.4 trillion in 2021. Since the lows of the post-recession market, the value of housing has more than doubled. By this time in 2023, Zillow expects the typical U.S. home will be worth more than $400,000.
This year, demand for housing will remain tight and continuing to outstrip supply. But there are headwinds for 13 Comments Read More >> |
@theMarket: Markets Needs to ConsolidateBy Bill Schmick, 03:55PM / Friday, March 25, 2022 | |
Commodities continue to run. Interest rates are hitting new highs, and stocks are holding their gains from last week. Nothing has changed on the geopolitical front and all eyes are once again focused on the Fed and its next meeting in May. What else is new?
Stocks have been surprisingly resilient this week in the face of dire predictions that a recession is just around the corner. Many investors, and those who preach to them, are convinced that the Federal Reserve Bank is intent on hiking interest rates to a level where the economy will collapse as inflation continues to spike. One Citibank research team is now predicting 50-basis point increase in the Fed funds rate in 0 Comments Read More >> |
The Retired Investor: U.S. Shale Producers Can't Rescue UsBy Bill Schmick, 03:44PM / Thursday, March 24, 2022 | |
Oil prices are up 70 percent since last year. Prices at the pump were well over $4.25 a gallon recently. Everyone from President Biden on down is scrambling to find a way to reduce energy prices. Why, therefore, aren't we looking at our own domestic oil producers?
Unlike Saudi Arabia or the United Arab Emirates, which can increase the global oil supply with a flick of a switch, the shale energy community would need to increase spending in areas such as exploration, drilling and production. That is something they are not willing to do for a variety of reasons.
For years, shale drillers have been plagued by regulatory and environmental obstacles. Despite 0 Comments Read More >> |
@theMarket: Markets Liked the Fed's messageBy Bill Schmick, 03:26PM / Friday, March 18, 2022 | |
The first interest rate rise in years was officially triggered in this week's Federal Open Market Committee meeting. Since then, stocks gained more than 5 percent on the news, which was contrary to many investors' expectations.
The reaction was even more confusing when you consider how hawkish Chair Jerome Powell and his FOMC members were both in the minute meetings and in Powell's Q&A session after the meeting. The Fed is officially planning for seven rate rises this year after the 25-basis point move on Wednesday.
The next hike could come as early as the central bank's next meeting in May. There is no guarantee that the next hike could 0 Comments Read More >> |
The Retired Investor: Has China Just Yelled 'Uncle?'By Bill Schmick, 04:27PM / Thursday, March 17, 2022 | |
Over the last year, the People's Republic of China has instituted several far-reaching policies that have roiled its economy and stock market. As a result, the Chinese stock market has lost some $2.1 trillion from its high. Are things about to change?
In a brief statement on March 15, 2022, China's top financial policy body seems to have relented somewhat, if not completely made a U-turn on policy The governing policy committee promised to ensure stability in capital markets, support overseas stock listings, resolve risks around property developers and complete the crackdown on technology companies. Both the central bank and the banking oversight committee would 0 Comments Read More >> |
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