Good Friday AM,
The news today was NOT bond friendly; quite the opposite.
Consumer Sentiment and Core PPI came in way too hot. PPI came in double the expected number, and Consumer Sentiment also jumped. Bonds are not collapsing under the news, but the ten-year has risen above the crucial 3.50 level. This could spark more selling, so please be careful. Next week is one of the biggest news weeks of the quarter, with the FED rate decision on the 14th, CPI on the 13th, and retail sales on the 15th. I believe next week will set the tone for the rest of the year and into the 1st quarter. The charts are weakening, so do not be surprised if we see a more considerable pullback.
The pictures is fantastic but like all pictures, it is a snapshot.
There is another side of it. I do see any slide in appreciation stopping in early 2023.
CoreLogic, Irvine, Calif., reported homeowners posted average annual equity gains of $34,300 in the third quarter—half the year-over-year increase recorded in the second quarter. The company’s quarterly Homeowner Equity Report said homeowners with mortgages (63% of all U.S. properties) saw equity increase by 15.8% year over year, representing a collective gain of $2.2 trillion, for an average of $34,300 per borrower, from a year ago. However, the report noted annual home equity gains began to slow in the third quarter, compared to the nearly $60,000 year-over-year gain recorded in the second quarter. Slowing prices also caused an additional 43,000 properties to fall underwater. CoreLogic said the quarter-over-quarter decline in equity is partially due to cooling home price growth across the country, as annual appreciation fell from 18% in June to just slightly more than 10% in October.
And, I was surprised at how much carbon emissions are produced by food systems.
It makes transportation look like an nonevent but alas, it is not the transportation, it is the oil that is used, and oil is used in most all of the categories below.
Please remain safe and stay healthy, enjoy the weekend and first, make today great!