As it turns out, buying at the market top can quickly lead to feelings of remorse.
With prices of single-family homes soaring the most on record...
...one recent survey found that millennials who decided to take advantage of low mortgage rates and buy a home during the COVID pandemic have mostly come to regret their decision.
As the survey from BankRate pointed out, buyer's regrets are even more of a factor in the pandemic, as agents compete even more ruthlessly for deals. Leave it to the millennial generation to normalize buying a home sight-unseen, and waiving contingencies that might allow them an escape hatch once problems emerge.
Unsurprisingly, the rush to buy is leading some to settle for properties that aren't quite right for them. Homebuyer regrets fell into two broad categories: financial and physical.
Also of interest: the survey found that, generally speaking, older buyers had fewer complaints about their purchases. Perhaps that's a reflect of the fact that older people have a better idea of what they want.
In total, 64% of millennial homebuyers, aged 25 to 40, have some regrets about their purchase compared with just 33%of baby boomers, aged 57 to 75.
By far the biggest regret among recent homebuyers was being unprepared for the cost of maintenance. More than 20% of millennial homeowners said they felt the costs of homeownership were too high, and that number jumped to 26% among those ages 25-31.
Millennials, well known for being fickle trend-followers, also reported finding that their home wasn't a good fit for them.
That those who buy during a market boom end up disappointing isn't surprising, since they have less time to make decisions, and are competing against a much larger pool of potential buyers.
"Because the market is so competitive, you have less time to make a decision on a homebuying purchase than you do on a laptop at Best Buy," said Olmsted. "You’ve already had, possibly, a couple of offers not accepted, you feel that pressure to make a decision and put an offer in."
For those looking to avoid being similarly dissatisfied, BankRate offered a list of helpful tips:
- Work with an agent who understands the market.
- Be ready to make some concessions, but stick to your guns on must-haves.
- Focus on whether a home is somewhere you’d be comfortable living, even if it’s not your dream property.
- Make a budget and keep it.
- Don’t rush into a deal just because you’re frustrated.
Another suggestion: remember, those who own their own homes are in the minority in the millennial generation. They should be grateful they aren't being forced to move back into their childhood bedrooms with their partner - because that's what some millennials are being forced to do to save for a down payment.
Looking Ahead In The Macro Market—Stock Market Preview For The Week Of June 27, 2022
A weekly stock market preview and the data that will impact the tape. Early Futures Open (6:24pm, June 26, 2022) – Stock Market Preview Weekend News…
A weekly stock market preview and the data that will impact the tape.
Early Futures Open (6:24pm, June 26, 2022) – Stock Market Preview
Weekend News And Developments
Canadian Prime Minister drives action on food security, climate change and gender equality at Commonwealth Heads of Government Meeting.
Carvana (NYSE:CVNA) Sought to Disrupt Auto Sales. It Delivered Undriveable Cars—OpEd Barron’s
Honourable Jean-Yves Duclos, Minister of Health, and Member of Parliament for Bourassa, Emmanuel Dubourg, will make an important funding announcement supporting long-term care in Quebec; June 27, 11:15am.
Ionis Pharmaceuticals, Inc. (Nasdaq: IONS), announced that GSK presented positive results from an interim analysis of the Phase 2b B-Clear clinical study of bepirovirsen (formerly IONIS-HBVRx), an investigational antisense medicine for the treatment of patients with chronic hepatitis B virus (CHB).
Madrigal Pharmaceuticals, Inc. announced data from multiple resmetirom abstracts presented at the European Association for the Study of the Liver’s International Liver Congress (EASL 2022), including a late-breaking presentation of data from the Phase 3 MAESTRO-NAFLD-1 study and three additional oral presentations from the resmetirom clinical development program.
Pfizer Inc. (NYSE: PFE) and BioNTech SE (Nasdaq: BNTX) announced positive data evaluating the safety, tolerability, and immunogenicity of two Omicron-adapted COVID-19 vaccine candidates: one monovalent and the other bivalent, a combination of the Pfizer-BioNTech COVID-19 Vaccine and a vaccine candidate targeting the spike protein of the Omicron BA.1 variant of concern.
President Joe Biden and Western allies opened a three-day summit in the Bavarian Alps on Sunday intent on keeping economic fallout from the war in Ukraine from fracturing the global coalition working to punish Russia’s aggression.
Saudi Exchange announces its intention to launch Single Stock Futures Contracts on the 4th of July 2022.
United States: The Biden admin alongside the G-7 announced that they will ban Russian gold imports to “further impose financial costs on Moscow for its invasion of Ukraine.”
What We’re Watching
U.S. Economic Calendar
|TIME (ET)||REPORT||PERIOD||ACTUAL||MEDIAN FORECAST||PREVIOUS|
|Monday, June 27|
|8:30 AM||Durable goods orders||May||0.20%||0.50%|
|8:30 AM||Core capital goods orders||May||—||0.80%|
|10:00 AM||Pending home sales index||May||-4.00%||-3.90%|
|Tuesday, June 28|
|8:30 AM||Trade in goods (advance)||May||—||-$105.9 billion|
|9:00 AM||S&P Case-Shiller U.S. home price index (year-over-year)||April||—||20.60%|
|10:00 AM||Consumer confidence index||June||101.1||106.4|
|Wednesday, June 29|
|8:30 AM||Gross domestic product revision (SAAR)||Q1||-1.50%||-1.50%|
|8:30 AM||Final domestic demand revision (SAAR)||Q1||—||2.70%|
|8:30 AM||Gross domestic income revision (SAAR)||Q1||—||2.10%|
|Thursday, June 30|
|8:30 AM||PCE inflation (monthly)||May||—||0.20%|
|8:30 AM||Core PCE inflation (monthly)||May||0.40%||0.30%|
|8:30 AM||PCE inflation (year-over-year)||May||—||6.30%|
|8:30 AM||Core PCE inflation (year-over-year)||May||4.70%||4.90%|
|8:30 AM||Real disposable income||May||—||0.00%|
|8:30 AM||Real consumer spending||May||—||0.70%|
|8:30 AM||Nominal personal income||May||0.50%||0.40%|
|8:30 AM||Nominal consumer spending||May||0.40%||0.90%|
|8:30 AM||Initial jobless claims||June 25||227,000||229,000|
|8:30 AM||Continuing jobless claims||June 18||—||1.32 million|
|9:45 AM||Chicago PMI||June||—||60.3|
|Friday, July 1|
|9:45 AM||S&P Global U.S. manufacturing PMI (final)||June||—||52.4|
|10:00 AM||ISM manufacturing index||June||54.90%||56.10%|
|10:00 AM||Construction spending||June||0.40%||0.20%|
Meme Of The Week
Key Upcoming Earnings (US Markets)
|Day||Symbol||Company||Earnings Call Time||EPS Estimate|
|KPRX||Kiora Pharmaceuticals Inc||After Market Close||-0.23|
|BYSI||BeyondSpring Inc||Time Not Supplied||-0.23|
|Monday, June 27||KLDO||Kaleido Biosciences Inc||Before Market Open||-0.51|
|BMTX||Bm Technologies Inc||After Market Close||0.08|
|CNTG||Centogene NV||Before Market Open||-0.53|
|CGRN||Capstone Green Energy Corp||After Market Close||-0.28|
|CNXC||Concentrix Corp||After Market Close||2.84|
|GP||GreenPower Motor Company Inc||Before Market Open||-0.08|
|CTKYY||CooTek (Cayman) Inc||Before Market Open||0.13|
|DLNG||Dynagas LNG Partners LP||After Market Close||0.17|
|TAL||TAL Education Group||Before Market Open||-0.05|
|EXPI||eXp World Holdings Inc||Time Not Supplied||0.01|
|JEF||Jefferies Financial Group Inc||After Market Close||0.51|
|TCOM||Trip.com Group Ltd||After Market Close||-0.08|
|LVO||LiveOne Inc||Time Not Supplied||-0.13|
|Tuesday, June 28||AEMD||Aethlon Medical Inc||TAS||-0.14|
|XAIR||Beyond Air Inc||After Market Close||-0.27|
|AVAV||AeroVironment Inc||After Market Close||0.39|
|FIZZ||National Beverage Corp||Time Not Supplied||0.43|
|SJR||Shaw Communications Inc||Time Not Supplied||0.3|
|SNX||TD Synnex Corp||Before Market Open||2.65|
|EPAC||Enerpac Tool Group Corp||Before Market Open||0.28|
|PRGS||Progress Software Corp||After Market Close||0.95|
|Wednesday, June 29||CDMO||Avid Bioservices Inc||After Market Close||0.01|
|BSET||Bassett Furniture Industries Inc||Time Not Supplied||0.45|
|BNED||Barnes & Noble Education Inc||Before Market Open||-0.17|
|BBBY||Bed Bath & Beyond Inc||Before Market Open||-1.37|
|CULP||Culp Inc||After Market Close||-0.35|
|CJREF||Corus Entertainment Inc||Before Market Open||0.15|
|PDCO||Patterson Companies Inc||Before Market Open||0.55|
|MKC||McCormick & Company Inc||Before Market Open||0.65|
|UNF||UniFirst Corp||Before Market Open||1.9|
|FC||Franklin Covey Co||After Market Close||0.18|
|MSM||MSC Industrial Direct Co Inc||Before Market Open||1.74|
|FTRP||Field Trip Health Ltd||After Market Close||-0.18|
|SGH||SMART Global Holdings Inc.||After Market Close||0.75|
|GIS||General Mills Inc||Before Market Open||1.01|
|SCHN||Schnitzer Steel Industries Inc||Before Market Open||2.3|
|NG||NovaGold Resources Inc||After Market Close||-0.03|
|PAYX||Paychex Inc||Before Market Open||0.79|
|MLKN||MillerKnoll Inc||After Market Close||0.47|
|Thursday, June 30||ACCD||Accolade Inc||After Market Close||-0.66|
|AYI||Acuity Brands Inc||TAS||2.95|
|WBA||Walgreens Boots Alliance Inc||TAS||0.92|
|WTER||Alkaline Water Company Inc||Before Market Open||-0.1|
|STZ||Constellation Brands Inc||Before Market Open||2.52|
|LNN||Lindsay Corp||Before Market Open||1.6|
|SMPL||Simply Good Foods Co||Before Market Open||0.35|
|TNP||Tsakos Energy Navigation Ltd||Before Market Open||-0.21|
|MU||Micron Technology Inc||After Market Close||2.44|
|Frdiay, July 1||None|
Spero Therapeutics, Inc. (Nasdaq: SPRO): The FDA is planning to hold an Advisory Committee meeting to discuss this application and has also set a Prescription Drug User Fee Act (PDUFA) target action date of June 27, 2022.
Short Interest Gainers
Carvana (CVNA) +33%: Short interest increased from 33.3% to just shy of the 35% mark—the highest level since December of 2020. Days to cover on Carvana rose from 1.3 to 1.6.
Chewy (CHWY) +32.96%: Short interest increased two percentage point increase to 28% to a two-month high. In the four-day period covered through Thursday, shares of Chewy are up 14.7%, though the stock remains down nearly 40% year-to-date.
Lemonade (LMND) +13.95% : Estimated short interest on the stock rose for the third consecutive week from 30.5% to 32.0%. Days to cover on Lemonade was also up nearly two points from 12.2 to 14.1- an all-times high.
Short Interest Decliners
Canoo (GOEV) -7.46%: Estimates short interest was down for the fourth consecutive week this week, slipping from 25.1% to 22.3%. Trading volume in the name has been particularly heavy this week with 5.5M-7.1M shares exchanging hands despite the absence of any meaningful news.
Citi Trends (CTRN) +3.58%: Estimated short interest peaked at an all-time high above 55% in mid-May, but has declined to just 30.1% since then as shorts cover on declining price action.
Tags: stock market preview, stock market preview June 27, 2022.
The post Looking Ahead In The Macro Market—Stock Market Preview For The Week Of June 27, 2022 appeared first on The Dales Report.nasdaq covid-19 home sales congress vaccine treatment fda gold european russia ukraine quebec
Home Showings Across US Plunge 24%, Mortgage Rates Remain Elevated
Home Showings Across US Plunge 24%, Mortgage Rates Remain Elevated
Authored by Naveen Anthrapully via The Epoch Times,
Home showings across…
Home showings across the United States have fallen, according to a report by the National Association of Realtors (NAR), with all four regions registering a decline.
Home showings—when a potential buyer takes a private home tour with an agent—were down by 24 percent year-on-year in May, with total showings across the country at 785,005, said the NAR SentriLock Home Showings Report. SentriLock is a lockbox and real estate management solutions company.
All four regions in the United States saw a decrease in showings year-on-year, with the Northwest falling by 55 percent, Midwest by 29 percent, West by 27 percent, and the South by 14 percent.
Total SentriLock cards fell 2 percent YoY to 214,868. The cards allow realtors access to Sentrilock lockboxes—which hold keys to a home and allow communal access to all real estate agents—and indicate the number of realtors who conduct the showing.
The number of showings per card, which reflects the strength of buyer interest per listed property, decreased 23 percent YoY in May nationwide. Region-wise, showings per card in the West fell by 29 percent, the South by 23 percent, and the Midwest by 22 percent. Only the Northeast registered an increase at 45 percent.
Meanwhile, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) fell by two points to 67 in June, which the organization called a “troubling sign” for the housing market and broader economy.
According to NAHB Chair Jerry Konter, the six consecutive monthly declines of HMI is a “clear sign of a slowing housing market in a high-inflation, slow-growth economic environment.”
This is the lowest HMI reading since June 2020. The index had hit a record high of 90 at the end of 2020 when the pandemic triggered strong demand for homes.
Elevated Mortgage Rates
The fall in home showings is happening as mortgage rates remain at elevated levels. A 30-year fixed-rate mortgage had an average interest rate of 5.81 percent as of June 22, according to data from Freddie Mac.
Realtor.com is expecting home prices and mortgage rates to continue climbing while home sales drop as buyers get priced out from homeownership, based on a June 13 analysis of market trends. The rise in mortgage rates is driven by the U.S. Federal Reserve hiking interest rates to control inflation, the company noted.
“Rising interest rates have shifted the foundation of the economy as well as the housing market. So many homebuyers take out mortgages so that rising rates affect how expensive homeownership is,” said the company’s Chief Economist Danielle Hale. “It’s causing buyers to make tough trade-offs and disrupting the housing market.”
An Investor’s Look Back for 2022
As we approach the end of June, now is a good time to look back over the market to see what has been happening. The price action is in the bottom right…
As we approach the end of June, now is a good time to look back over the market to see what has been happening.
The price action is in the bottom right corner of the charts, whereas, at the end of 2021, it was in the top right corner of the charts. Who could have seen the problems coming? I think the technical analysis arena did an excellent job of showing the risks for downside momentum to increase.
On December 17th, I recorded a video about the technical problems aligning in the market and how they created the situation for a rough start to 2022.
A historical look back
In six-month increments, let's take an educational look back on what has been happening.
Starting in June 2021, we came off the effervescent high of the SPAC boom. As the book Reminiscences of A Stock Operator highlights so clearly, when there is an abundance of money trying to enter the market, the bankers will respond with new offerings. Nowadays, venture capitalists have all the data they need to be ready to hand over these companies at lofty valuations and step aside for the downside slide. By June 2021, the SPAC announcements had slowed to a relative crawl compared to the 4th quarter of 2020 and the first quarter of 2021.
The defensive side of the market was out of favour, still showing positive returns to their investors, but vastly underperforming. Energy raged forward as the vaccines were rolling out, suggesting the economy would surge with post-pandemic freedom. More on that later. Real Estate and financials were on fire. Interestingly, the growth areas of discretionary, communications and technology were middle of the pack.
As the second half of 2021 rolled in, the market changed significantly. Communications and industrials vastly underperformed everything. Technology was back to a glory story, while discretionary and real estate continued to flourish. Financials were in the bottom third. Materials, energy and defensive names were middle of the pack.
By late December, we were also narrowing our focus on the Sexy Six large cap names that kept holding up, even while there was a large breakdown in many of the trendy areas of the market. We didn't know it at the time, but the November high in the Nasdaq was behind us. The move to electric cars and the investment theme around them came and went. Copper made a high in May 2021 and most of the metals moved sideways for the remainder of the year. Oil continued its steady climb in a big bull market that kicked off with the vaccine announcements fourteen months prior.
As we turned the corner into 2022, almost all of the upward momentum was focused in energy. Technology stocks, including semiconductors and software, moved down meaningfully as the sexy six slowly let go. Alphabet, Meta and Amazon were the early leaders to the downside. Consumer discretionary and communications dropped hard.
By the end of June, the continuous slow demise of investors' love for the technology space came to the fore. By March, investors were touting the start of a new bull market in Energy. After a 1000% gain in the oil and coal stocks, the relative strength community reluctantly decided it was a new bull market in fossil fuel energy. (You can't make that stuff up!) Still, the technology investment community has been reluctant to dive into the dark side. While the tiger cubs watched 50% of their asset valuations disappear, they couldn't muster a shift into the best performing sector for the past 18 months.
To end the quarter, the financials wobbled sideways but slowly moved lower. On Friday, June 17th, the bank ETF closed at new 52-week lows. Commodity stock markets like Australia and Canada dropped meaningfully as oil names sold off hard. Oil stocks quickly plummeted for 10 days from new highs to their 200-day moving averages, casting down 25%. The technology names continue to be sold as inflation roars. The Fed is speeding up their time line for rate hikes as the economy slows quickly under the pressure of firm gasoline prices and rising food prices.
The graph below shows the stock market price/earnings ratio (P/E) ticking down over the past 6 months. The move down is a 20% drop from all-time highs. Because this is a 100-year chart, the log scale makes the move down look small. An arithmetic chart would show this as a 20% plunge of the entire chart height. With the Fed continuously providing a trampoline for the markets from 2008 to 2022, the market has stretched into higher and more extreme valuations compared to history. Since the early nineties, the market has hugged the red line a lot more than the middle of the range at the blue line. Now that we are below the red line, we are in a relative value area for investment managers, as they have seen the market above the 20 P/E level most of their careers.
The next move for the market is unknown, but the fight between the headwinds of inflation forces and the desire for investment managers to make money before year-end should be an epic battle. Throw in the US Mid-terms and that adds more pressure.
The strength indexes we use at the Osprey Strategic website to evaluate when to put money to work are trying to turn up. If you are interested in getting help evaluating the market, check out the one-month trial at $7 on the homepage of OspreyStrategic.org. We are looking for the fourth buy point of the year right now. The last three were very short. Will this one be the one that extends into the next bull market?nasdaq stocks pandemic fed real estate etf vaccine stock markets oil canada
Stocks6 hours ago
Hedge Fund CIO: How Will The Fed Do QT? Each Crisis Has Increased Markets’ Dependency On Fed Liquidity
Economics12 hours ago
ISS Recommends that Spirit Airlines Stockholders Vote FOR the Amended Merger Agreement with Frontier
Spread & Containment15 hours ago
Innovation Pharmaceuticals Inc (OTCMKTS: IPIX) Breaking Out as Biotech Reports Brilacidin Inhibits Omicron, Delta, Gamma and Alpha SARS-CoV-2 Variants Based on In Vitro Testing
Crypto17 hours ago
One Year After His Death, John McAfee’s Corpse Still Being Held By Gov’t, Fueling Claims Of ‘Cover Up’
Government11 hours ago
CDC Confirmed Post-Vaxx Death From Blood-Clotting Two Weeks Before Alerting Public: Emails
International13 hours ago
Twitter Just Fine With Assassination Threats Against Justice Clarence Thomas
Government10 hours ago
40,000 National Guard Troops Face Unemployment As Vaccine Deadline Imminent
Stocks7 hours ago
The Sussex researchers who used international collaboration and 3D printing to stem PPE shortages in Nigeria