Eli

Jan 15 2016

U.S. Market Recon – January 2016

Economy

Housing

The US economy grew in the past quarter, though not as strongly as it had previously. Unemployment is holding steady at 5.0%. Workers’ earnings continue to rise, with average earnings climbing to $872/week. Rental vacancies continue to fall, with the national rate ticking down to 7.0%. Home ownership is trying to escape its downward trend, with the national rate climbing to 64%. Home building applications continue to rise this month and quarterly housing prices continue to rise a further 1.0%. [Read more…]

Jun 22 2015

Mean Reversion and Economic Recovery

Mean reversion is a statistical concept, particularly popular in finance, which states that over the long term a particular series of events will tend to return to its long-run average value. [Read more…] about Mean Reversion and Economic Recovery

Apr 27 2015

The Free Ride to Easy Returns in REITs is Over

2014 was a great year to be invested in REITs (and other stocks). If you bought the sector by going long IYR (iShares U.S. Real Estate ETF) in January and held on until the end of December you would have realized returns over 20%. If you started that same strategy this year, however, you would be barely breaking even. [Read more…] about The Free Ride to Easy Returns in REITs is Over

Mar 20 2015

REITs Are Dead! Long Live REITs!

2014 was a great year to be invested in REITs. Aside from a dip in September, [Read more…] about REITs Are Dead! Long Live REITs!

Feb 27 2015

Don’t Get Spooked by Interest Rates When Investing in Mortgages

Conventional wisdom seems to hold that rising interest rates are good for mortgage-related investments (such as ETFs). [Read more…] about Don’t Get Spooked by Interest Rates When Investing in Mortgages