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The S&P 500 posted its second consecutive week of gains.  Energy-related companies fell, but that was offset by a rise in health care stocks.  Pharmaceutical companies did well following some encouraging news on the development of some new drugs, and then continued to climb following the announcement of the U.S. Senate’s plan to overhaul the Affordable Care Act.  For the week, the S&P 500* increased 0.21% (up 8.91% for the year).  The MSCI All Country X US* decreased 1.17% (up 13.08% for the year).  The Barclays Global Aggregate Bond Index* increased by 0.04% (up 4.71% for the year).  The HFRX Global Hedge Fund Index* decreased 0.14% (up 2.67% for the year).


As oil prices sink, so does the price of gas.  Gasoline prices have fallen every day since June 2 according the AAA with the average price now at $2.28, down ten cents since the beginning of the month.


Sales of new homes remain somewhat low historically, but continue to gain steam.  New home sales came in at the rate of 610,000 annually last month compared to 593,000 in April and 560,000 in May of last year.  The first graph shows sales of new homes since 1963.  As you can see, the current rate (the dotted line) is much healthier than it has been in awhile, but still on the average-to-low side historically:

The next graph (below) shows that in 2017 each month has outpaced the same month one year earlier, so we remain on the same upward trajectory that the prior graph illustrates.


In 2010, age 50 was the most common age in the U.S.  The younger end of the baby boomers were the dominant age group.  The five most common ages in 2010 were 50, 49, 20, 19, and 47.  In six years this has shifted dramatically.  The five most common ages in 2016 were 25, 26, 24, 23, and 27.  Many industrialized countries continue to face demographic issues with aging populations and the challenges this causes.  While the U.S. will not avoid the challenges of an aging population, our demographic dynamics are much more favorable and bodes well for the health of the housing market and the economy in general.  (See also a book I reviewed recently, The Accidental Superpower: The Next Generation of American Preeminence and the Coming Global Disorder, by Peter Zeihan which describes in great detail this demographic dynamic.)



SALES OF NEW HOMES PICKING UP: http://www.calculatedriskblog.com/2017/06/new-home-sales-increase-to-610000.html
THE MILLENNIALS ARE TAKING OVER: http://www.calculatedriskblog.com/2017/06/us-demographics-millennials-take-over.html
GAS PRICES KEEP FALLING: http://money.cnn.com/2017/06/21/news/economy/low-gas-prices/index.html?iid=hp-toplead-dom
U.S. STOCKS MOVE HIGHER AGAIN: https://www.wsj.com/articles/global-markets-china-stocks-fall-as-deal-makers-borrowing-probed-1498187415https://www.wsj.com/articles/the-dark-side-of-good-news-in-biotech-1497886898