ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro and Summary “…the level of housing activity is at its highest level since before the global financial crisis in some measure. So we’ve had a very strong rebound in housing. Some of the tightness in housing markets — which has led to the significant price increases this year — we think is … Read more
Housing Market Intro and Summary In recent months a divergence in the housing market emerged between rangebound home builder stocks and strong housing data. In October, new home sales recorded a third straight month at the 1 million mark. Since new home sales hit an August peak, the stocks of home builders have also largely … Read more
Housing Market Intro and Summary A divergence in the housing market emerged between rangebound home builder stocks and strong housing data. In October, new home sales recorded a third straight month at the 1 million mark. Since new home sales hit the August peak, the stocks of home builders have also largely gone nowhere. A … Read more
Housing Market Intro and Summary A divergence in the housing market is emerging between slowing home builder stocks and strong housing data. The housing boom in the U.S. continued to make its mark in the middle of the pandemic-induced recession. While new home sales took a bit of a pause in October, housing starts, existing … Read more
Housing Market Intro and Summary The pandemic recession ended for housing in July. August demonstrated that an all-out housing boom is underway. I was expecting the housing data to start normalizing. Instead, demand pushed ever higher and supply tightened further. Housing Stocks Toll Brothers (TOL) started last week with a preliminary report on net new … Read more
Housing Market Intro and Summary The pandemic recession is over as far as the housing market is concerned. The case for V-shaped recoveries was evident in the last Housing Market Review. The recovery completed in August with important new highs in existing and new home sales and in home builder sentiment. Ultra-low interest rates support … Read more
Housing Market Intro and Summary The housing downturn ended almost as quickly as it began. V-shaped recoveries are evident across a spectrum of data, especially in home builder sentiment and new home sales. Home builders continue to describe extremely strong demand that, in many cases, goes beyond the release of buying power pent-up by the … Read more
Housing Market Intro and Summary I asked in my last Housing Market Review whether the housing downturn could already be coming to a swift end. The stocks of home builders delivered that message and more and more earnings reports from home builders are apparently delivering messages of a sharp recovery. A widening divergence between existing … Read more
Housing Market Intro and Summary Could the housing downturn already be coming to a swift end? The stocks of home builders are delivering this message. They have enjoyed a very healthy rally and recovery from the depths of the March stock market crash. The challenges ahead are large: worsening economic conditions, unemployment at historically high … Read more
Housing Market Intro and Summary Something surprising is happening in the middle of the current downturn in the housing market: buyers keep coming and home builders are staying resilient and resolute. A series of earnings reports from publicly traded home builders do not reflect the historic plunge in builder sentiment from April (see below). The … Read more