By Bill Hornbarger, Chief Investment Officer
Three Things to Know
- At the end of January, there were 1.04 million homes for sale. That is down 26% from a year earlier and the lowest on record going back to 1982, according to the National Association of Realtors. (Source: The Wall Street Journal)
- The Turkish Lira was quoted as much as 16% lower in early Monday trading in Asia following President Recep Tayyip Erdogan’s decision to replace the country’s central bank chief. (Source: Bloomberg)
- SPACs have already surpassed the previous record high issuance from 2020, and it’s only March. $89.7 billion has been issued across 276 SPACs so far this year. (Source: Compound Advisors)
Three Things to Watch
- With inflation fears catching investors’ attentions, Friday’s reports on the PCE deflator and University of Michigan inflation expectations will be closely watched. The consensus for the PCE deflator is 1.6% (overall) and 1.5% (core), below the Fed’s stated target of 2%. The previous one-year expected inflation rate from the U. of Michigan data was 3.1%. This survey-based number has been consistently higher than both measured inflation and market-based indicators.
- GameStop releases earnings this week and management is likely to be asked about recent volatility and internet chat room activity surrounding the stock.
- Investors will also track the yield curve (steepening sharply in recent weeks on inflation fears) and U.S. trade rhetoric with China.
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.