unemployment: Unemployment, Fed Bond Buying and Investing in Stocks
- 09/10/13 09:43 AM
They are close first cousins although it doesn't seem obvious at first. The stock market should go down when the economy is doing poorly and the companies are reporting poor results. Right? Wrong! Stock prices respond to many seemingly unrelated things such as Fed bond buying. The Fed is buying $85B of bonds per month to keep borrowing costs low to stimulate the economy. When are they going to stop? Well, when unemployment dips or inflation rises. Inflation has been below 2% and we added an anemic 169,000 jobs last month, below the minimum threshold of 200,000 that the economists want. … (2 comments)
unemployment: Unemployment, Wage Growth and Real Estate
- 09/01/13 04:08 PM
We've been watching the unemployment numbers creep down gradually. But there's no dancing on the streets. Why? Like most of our lives there's a mixed bag of good and bad here - once you peel the onion. Yes, the unemployment rate is down but the preponderance of jobs are in the lower wage category. While this puts people back to work, it does not give them the monetary biceps to make a major dent in consumer spending or housing. For those that are working, wage growth has been anemic. Why? Because companies have been laying off people and using technology to … (0 comments)
unemployment: Unemployment at a 4 year low. An uptick in inventory expected from HUD
- 05/04/13 04:00 AM
April payroll employment increased by 165,000, and the current unemployment rate at 7.5% is at a 4 year low. According to S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, average home prices increased 8.6% and 9.3% for the 10- and 20-City Composites in the 12 months ending in February 2013. Phoenix had the highest return of 23% on a year-over-year basis. Atlanta and Dallas had the highest annual growth rates in the history of these indices since 1992 and 2001, respectively. National Association of Realtors forecasts total existing-home sales to increase 6.5% to 7% over 2012 to nearly … (0 comments)
unemployment: Rosy unemployment projection may prompt rate hike in June 2014
- 02/22/13 11:41 AM
ECONOMY Federal Reserve Bank of St. Louis President James Bullard said U.S. unemployment may drop to 6.5 percent by June 2014 and prompt the Fed to raise its benchmark interest rate from near zero. “The current St. Louis Fed forecast for the unemployment rate implies that the 6.5 percent threshold will be crossed in June 2014,” Bullard said in New York. The National Mortgage News reported that the banks are showing preference towards short sales and principal reduction on second liens in order to meet their settlement compliance obligations. HUD reported that a relief of $22.5 billion has been provided in … (1 comments)
unemployment: Investor Galore: Is the economy really recovering or shifting?
- 02/02/13 07:15 AM
ECONOMY The market fundamentals favor Real Estate Investors: The St.Louis Federal Reserve reported that mortgage delinquencies, among the top 100 banks, have been increasing and reaching 12%. While CoreLogic is reporting that the National foreclosure inventory has fallen 19.5% from one year ago, Fed's report translates to 3.6 million borrowers, among the top 100 banks (excluding FHA owned mortgages), adding to potential foreclosures in the future. The US Census data shows that the US homeownership rate fell to 65.4% in the fourth quarter of 2012 compared to 66% of the final quarter of 2011, and the rental vacancy rate decreased by 0.7% in … (0 comments)
They are close first cousins although it doesn't seem obvious at first. The stock market should go down when the economy is doing poorly and the companies are reporting poor results. Right? Wrong! Stock prices respond to many seemingly unrelated things such as Fed bond buying. The Fed is buying $85B of bonds per month to keep borrowing costs low to stimulate the economy. When are they going to stop? Well, when unemployment dips or inflation rises. Inflation has been below 2% and we added an anemic 169,000 jobs last month, below the minimum threshold of 200,000 that the economists want. … (2 comments)
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