Good Morning Everyone!
I hope you are all excited about another great week! For many, this is the unofficial last week of summer with school, NFL and other fall staples starting again after labor day weekend.
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The current 10 Year US Treasury yield is 3.04270%. Markets are down on the year. Let's take a look at how the major indexes have performed since January 1:
| Dow Jones |
32,283.40 |
-11.16% |
| S&P 500 |
4,057.66 |
-14.87% |
| Nasdaq |
12,141.71 |
-22.39% |
| Rusell 2000 |
1,899.83 |
-15.39% |
- Something has to give in the housing market. Affordability is at a 30-year low and continues to get worst due to rising interest rates. Today a 20% down payment would require 32.7% of the median household's income, that's 40% higher than the 25-year average of 23.5%. Either housing prices or interest rates have got to give.
- Powell Sinks Markets. On Friday, Federal Reserve Chairman Jerome Powell gave a speech reiterating that the US will aggressively approach interest rate hikes to continue fighting inflation. This is despite the US suffering two consecutive quarters of GDP contraction while inflation seems to be decreasing. The news sent markets into turmoil, with the Dow falling 3.03% for its worst day since May 18, S&P 500 falling 3.37% for its worst day since June 13, and the Nasdaq falling 3.94% for its worst day since June 16. High-interest rates are here to stay.
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Here is a great article I read earlier today that I wanted to share: https://www.cnbc.com/2022/08/28/goodrx-ceo-doug-hirsch-weekly-activity-results-in-very-best-ideas.html
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This newsletter is not legal, financial, or tax advice. Please We consult an attorney before making any legal decisions, financial advisor before making investment decisions and tax specialist for any tax matters. I make no representations and take no responsibility for the actions you take based upon this information.
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