Good Tuesday AM,
Bonds are once again under pressure. Retail sales were super strong. The economic data is continuing to show strong growth. The truth is these are all lagging indicators, so we continue to look in the rear view mirror, but volatility is what traders look for and this certainly offers it. Over the medium term, things will settle down.
- Retail Sales 1.7 vs 1.2
- Retail Ex Autos 1.7 vs 1.0
- Import Prices MOM 1.2 vs 1.0
From a technical standpoint, we must hold were we are, or we risk rates jumping another .125% – .25% in the short term. I am keeping my fingers and toes crossed (the latter, a special talent) for sure.
Redfin shared that real estate investors picked up 18.2% of the U.S. homes sold during the third quarter, a record-setting level. Furthermore, 76.8% of investor home purchases were paid for with all-cash transactions. A little more definition on why it is tough to get offers accepted.
And, I found this graph interesting… the correlation between colder temps (runny noses, coughs, etc..) and a spike in Covid cases. I hate that this is a reason rate increases will be limited, but it likely is.
Please remain safe and healthy, make today great!