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 Real estate is local. Regional banks often sit at the heart of local communities. So it seems odd writing about the relative strength in the housing market in the wake of the Panic of 2023 that featured the historic collapse of two regional banks, Silicon Valley Bank (SIVB) and Signature … Read more
Housing Market Intro and Summary In my last Housing Market Review, I described a housing market that shows signs of stabilization. That stabilization continues despite a strong rebound in mortgage rates. Mortgage rates now look like a renewed risk to the housing market. However, the uptrend in most of the stocks of home builders are … Read more
Housing Market Intro and Summary In my last Housing Market Review, I laid out the case for bracing for what 2023 would bring even as “faint signs of a bottoming for sentiment have started to appear.” The latest housing data and industry expectations suggest that the market is well-braced for 2023. The signs of bottoming … Read more
Housing Market Intro and Summary A continued respite from rising rates gave some breathing room for new home sales to stabilize in November while existing home sales continued to plunge with a dearth of inventory helping to suck air out of the room. Housing starts continued to plunge in parallel with home builder sentiment. However, … Read more
Housing Market Intro and Summary In my last Housing Market Review, I described how a housing recession was reflected in the worsening housing data, including the latest report on U.S. GDP. While new home sales made another surprise bounce in October, the rest of the housing data continued to worsen in the month. However, a … Read more
Housing Market Intro and Summary In my last Housing Market Review, I described the dynamics of a housing market trying to wait out this cycle of rising rates. Since then, ever higher mortgage rates continued their relentless and sharp uptrend. Accordingly, the pressures on the housing market simply increased further. The marks of a deepening … Read more
Housing Market Intro and Summary In my last Housing Market Review, I called the housing slowdown a “reality check.” That reality is settling into all corners of the market. With mortgage rates resuming their surge over the past two months, the go-forward picture has dimmed further for the housing market. It seems likely the housing … Read more
Housing Market Intro and Summary A potential peaking in mortgage rates may be the only good thing to say about today’s housing market. Sales continue to slide, input costs remain high, affordability continues to decline, and builder sentiment sinks lower and lower. The reports from August tell a consistent story of a steepening housing downturn. … Read more
Housing Market Intro and Summary Talk of an imminent recession has almost reached a feverish pitch. Accordingly, it is easy to find fears and expectations for an imminent housing crash. The crash watch is morbid as it relies on desperate home owners falling behind on mortgage payments and/or burdened by sinking equity to exit the … Read more
Housing Market Intro and Summary A month ago, housing-related stocks managed to stabilize despite deteriorating data. Reality caught up in June with a fresh round of selling in the stocks of home builders. A surprising jump in new home sales provide some relief for an otherwise on-going din of negative housing news. The National Association … Read more