As seen in this week’s Wealth Watch…
The S&P 500 sent all investors a golden ticket to an upcoming bull market disco. As of recently, The HCM-BuyLine® received its own invite while donning its finest medallion and silver bell bottoms. Over 5 trillion dollars continues to burn a massive hole in everyone’s pockets, leaving them with the same anxiety a mother experiences before a Black Friday event. The one day out of the year (un)athletic shoppers are given the opportunity to prove their spending habits should be considered an extreme sport.
Speaking Of Exclusive Parties
Wuhan threw down like it was 1969 last Saturday. Pools full of concert goers made canned sardines look socially distanced. Fingers crossed the Wuhan Maya Beach Water Park has invested in military-esque chlorination tactics, or we could have worse than COVID on our hands. However, if Wuhan has taught us anything, it’s that everyone peaks at some point. If 94% of their businesses could resume operations by mid-April, then we’re optimistic the rest of the world can follow suit as soon as possible.
Swedish students have returned to routine frolicking according to recent images in the news. Deaths and hospitalizations have been loosely reported as of late, because what fun is it to talk about an empty emergency room.
As the old saying goes, when a door closes a window opens to provide a breeze for contractors. New residential construction, also known as housing starts, surged 22.6% in July. With this being its third gain in a row, housing starts are now 3-for-3 in 2020. This is a win compared to October 2016, as these numbers rose to a 1.496-million-unit annual rate. Even though housing starts are still 7.5% below their pre-recession peak, they remain zen as a yogi glamping in Joshua Tree.
Raise the Roof
Multifamily and single-family construction percentages are both on the rise, with single-family percentages taking the lead. No one wants to hear their neighbor’s late night shenanigans if they don’t have to. Building permits jumped 18.8%, bypassing January 1990’s numbers. What looked to be an uphill hike for housing markets could actually be a downhill roll to financial recovery.
It seems as though the thriving market has taken a page out of Sweden’s book and is ready to get back to yodeling from the mountaintops. Our economy continues to rebuild itself like the new units of the housing market, despite citizens ditching high rent in big cities. Investment is gaining traction and recovery is on the horizon as the bear market finally moves toward hibernation.