@theMarket: Debt Deadline Hangs Over MarketsBy Bill Schmick,
04:09PM / Friday, May 26, 2023 | |
One week before the debt ceiling deadline, members of Congress have adjourned, while a handful of negotiators continue to search for a compromise solution to the impasse. Investors are holding their breath.
As many expected, myself included, the politicians are drawing out the drama and will continue to do so until the 11th hour. Both sides have stressed that there will be no default and the market has taken them at their word. Investors have bid up stocks this week in anticipation of a positive announcement.
This week, Fitch, one of the big three American credit agencies, has put the nation's debt on a negative credit watch. The agency warned that it 0 Comments
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The Retired Investor: Rents Rising as More Americans Priced Out of Housing MarketBy Bill Schmick,
05:35PM / Thursday, May 25, 2023 | |
Nationwide, rents have been climbing since the pandemic, but it is still cheaper to rent than to buy in most of the country. As such, in some states, building houses-to-rent is becoming a trend.
Home prices continue to soar with the median sale price of a U.S. home gaining 32 percent in the first quarter of this year from the same time in 2020. Throw in the climb in mortgage interest rates and there is no wonder that a record number of Americans believe it is a terrible time to buy a house, according to a Gallup survey. Renting seems to be the only alternative.
But the unfortunate fact is that rents are growing faster than incomes in the U.S. The trend began 0 Comments
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@theMarket: Markets Signaling No Debt DefaultBy Bill Schmick,
04:45PM / Friday, May 19, 2023 | |
The only thing that mattered to investors this week was the looming U.S. government debt default. Fortunately, the comments from major players in the debt talks have been largely encouraging. The devil, however, will be in the details.
The stated deadline for the passage of raising the debt ceiling is June 1, according to Janet Yellen of the U.S. Treasury Department. Some argue that it is a self-imposed deadline. Depending on several factors, including tax revenues, the U.S. might conceivably stretch its ability to pay its debt as far out as August, but that is no sure thing.
In any case, even if the two sides fail to agree on the details there is also the 0 Comments
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The Retired Investor: Food Prices May Be Moderating in Some CasesBy Bill Schmick,
04:44PM / Thursday, May 18, 2023 | |
For more than a year, consumers have been contending with higher food prices. The latest read of April's Consumer Price Index, however, gave some hope that relief may be around the corner.
Headline inflation rose 0.4 percent last month but a look under the hood revealed that the "food at home index" declined. This was the second month in a row that prices for fruit, vegetables, meat, and eggs among other items, fell.
That may be so, but I certainly am not seeing those price declines in my shopping bill. Let's take eggs for example. You may remember that in December 2022, we were paying as much as $5.46 on average for a dozen eggs. The 0 Comments
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@theMarket: Stocks Playing a Game of InchesBy Bill Schmick,
03:24PM / Friday, May 12, 2023 | |
Bears and bulls are battling for supremacy, which is keeping stocks moving in a tight range. The question is which way will the markets break?
On the plus side, inflation does appear to be falling, or at least not going higher. Both the Consumer Price Index and the Producer Price Index came in as expected for April. Investors interpreted the data as a bit of a positive in the fight to control inflation. The trend is definitely down compared to last year's numbers.
Bears, on the other hand, were encouraged by the rising fears of a default on the nation's debt in less than three weeks. In addition, the ongoing regional bank contagion is alive and well. 0 Comments
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