Beneath the Market's Surface: Real estate, rotation, and the debt ceiling
Tape Talk | Investing, Business, Wealth, and Your Money
English - August 28, 2017 16:37 - 38 minutes - 35.3 MB - ★★★★★ - 39 ratingsInvesting Business Education Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Covered in this episode of Tape Talk Radio:
Real Estate Market Update with Queen of Real Estate Kelly Karls
August's new home sales data came in weak, showing an over 9% decline in July and falling to a low for the year. Are buyers' interests beginning to wane or is this simply a "blip" in the market? In contrast, existing home inventories continue to contract leaving little on the market for buyers and causing homes to sell at a quick thirty days on average. To add to the picture, interest rates are projected to head higher from here. We talk to Kelly Karls, Lexington's Queen of Real Estate, about what buyers and sellers should be thinking about now and what to expect going foward.
What's Happening in the Market Now?
Have financials replaced transports in the Dow theory? Is rotation finally beginning to take shape? While the general indices have stagnated for the past month there has been movement under beneath the surface of the market. We'll talk about the sectors that are taking a pause and look at a few that may be ready to move higher. What should investors be looking for now to take advantage of this rotation?
How Does Rotation Affect an Index?
When you buy an index you're naturally aligning your weighting to the specific sectors as they are in the index. This isn't necessarily a bad thing. However, what happens when the largest sectors zig while the smaller sectors zag? Is there a way for investors to look beneath the index and understand what's going on in the individual sectors? It's possible that investors can find opportunity in sectors or themes even while the market indices overall head nowhere.
Headwinds Ahead?
Whatever happened to the debt ceiling discussion? Will Congress be able to get anything done or have hard lines been drawn between legislators and the President? If the debt ceiling discussions inject a bit of volatility into the market what might people consider doing depending on their various investment stage?