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NEW HOME SALES PICKING UP:

In February, new U.S. homes were sold at the annual rate of 592,000.  This is part of a growing trend, but still low by historic standards.

UNSETTLING WEEK UNSETTLES THE MARKETS:

U.S. stocks had their worst week since the presidential election last November, with major indices now sitting at about 2.5% off the record highs set earlier this month.  For this past week, the S&P 500* decreased 1.44% (up 4.70% for the year).  The MSCI All Country X US* decreased 0.25% (up 8.33% for the year).  The Barclays Global Aggregate Bond Index* increased 0.90% (up 1.93% for the year).  The HFRX Global Hedge Fund Index* decreased 0.33% (up 1.34% for the year).

THE FORECLOSURE TSUNAMI IN HINDSIGHT:

In 2001, a total of 183,437 homes in the U.S. completed the foreclosure process.  This number gradually rose and beginning in 2007 swelled, peaking in 2010 at nearly 1.2 million completed foreclosures.  From 2007 to 2016 nearly 8 million homes were foreclosed.  There were 385,748 completed foreclosures in 2016, a drop from over 500,000 the year before.

CAR SALES PEAKED?:

According to Ford Motor Company, auto sales in the U.S. and China will decrease in 2017 and 2018.  The U.S. market has been helped by access to cheap leases and long-term loans with low interest rates.  Interest rates are rising and a flood of pre-owned vehicles are going on sale due to the leasing boom.  This boom in returned, leased cars is lowering the price of used cars, which makes the brand new car purchase less attractive.  According to Edmunds.com, the average monthly payment for leasing a new car is $515, up only 6% from the average of $487 in 2007.

ADDICTED TO DEBT:

From 1791 to 1920, the U.S. government balanced its budget 68% of the years, but from 1930 to 2017, just 15%.

 

References:

ADDICTED TO DEBT: http://finance.townhall.com/columnists/chrisedwards/2017/03/14/the-threat-from-federal-debt-n2298445
THE FORECLOSURE TSUNAMI IN HINDSIGHT:  http://www.calculatedriskblog.com/2017/03/corelogic-between-20072016-nearly-78.html
HOME SALES PICKING UP:  http://www.calculatedriskblog.com/2017/03/new-home-sales-increase-to-592000.html
CAR SALES PEAKED?: https://www.wsj.com/articles/ford-motor-warns-profit-will-fall-in-2017-1490278988