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NOT AS BAD AS WE THOUGHT:

The U.S. Bureau of Economic Analysis (BEA) always updates its estimate of GDP growth for the prior quarter and the initial estimate is either revised up or down.  For the first quarter, the BEA revised its first estimate for the first quarter from 0.7% annualized growth to 1.2%.  This is still lower than we want, but not quite in the “anemic” range.

ALL POSITIVE:

It was a very rare week.  Each day saw the S&P 500 increase.  There were no down days.  For the week, the S&P 500* increased 1.43% (up 7.91% for the year).  The MSCI All Country X US* increased 0.26% (up 14.10% for the year).  The Barclays Global Aggregate Bond Index* edged up by 0.07% (up 4.03% for the year).  The HFRX Global Hedge Fund Index* increased 0.28% (up 2.44% for the year).

WILL THE DISTRESSING GAP CLOSE?:

When purchasing a home, you have a choice between a newly built structure and an existing home.  For many years, sales of new and existing homes was always very close.  Then came the housing bubble.  New home building went south and the market was flooded with foreclosed homes.  The gap between new home sales and existing home sales became known as the “distressing gap”.  As you can see below, it still exists.  Will the blue line level off and the red line catch up again?  Many believe so, especially if current trends continue.

 

CHINA DOWNGRADED BY MOODY’S:

Moody’s Investors Service downgraded China’s credit rating.  A spokesman for Moody’s cited slowing growth and the increasing size of its debt service.  The Chinese finance ministry did not agree with the analysis.

FOUR YEARS IS ENOUGH FOR A FOUR YEAR DEGREE:

According to comprehensive data compiled by the Chronicle of Higher Education, 33% of students at U.S. public universities graduate within four years of matriculation, and 57% graduate by year six.  For nonprofit private colleges and universities, the four year rate is 57% and the six year rate is 65%.  You can go to this site to see the rates for your alma mater or the school your child is thinking about attending.  (My alma mater beats the averages!).  One way to reduce college costs is to go to a school that gets your child finished in four years.  (The other thing you can do is tell your children, as we did, that your commitment to their four year degree expires in four years!)  Four years is much cheaper than five or more.

 

References:

FOUR YEARS IS ENOUGH: https://www.horsesmouth.com/graduation-rates-an-overlooked-college-planning-metric?utm_source=SilverpopMailing&s=nohttp://collegecompletion.chronicle.com/
NOT AS BAD AS WE THOUGHT: http://www.calculatedriskblog.com/2017/05/q1-gdp-revised-up-to-12-annual-rate.html
WILL THE DISTRESSING GAP CLOSE?: http://www.calculatedriskblog.com/2017/05/a-few-comments-on-april-existing-home.html
CHINA DOWNGRADED BY MOODY’S:   http://www.cnbc.com/2017/05/23/moodys-downgrades-china-rating-to-a1-from-aa3-with-stable-outlook.html