The major averages enter the final hour with small gains on little real news. Though yesterday’s market scare regarding the restriction of direct foreign investment, particularly with respect to Chinese buying of real estate, something that has been a very large driver of that market, is a subject that I’m sure will be revisited given the increasing acrimony of the trade war.
The Richmond Fed regional index gained 4 points in June on strength in new orders and employment.
Case/Schiller reports that it’s National Home Price Index gained 1% in April and 6.4% from a year ago. New York, San Francisco and to a lesser extent Washington DC all saw price declines for the month. Las Vegas rose strongly again followed by Boston and San Diego. With mortgage interest rates at a 7-year high I would expect the real estate market to struggle going forward. If the trade war sparks foreign capital flight, overheated markets could suffer significantly.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.
Rebroadcasts, additional writings, and other entries are also available on my Blog at www.clinvestments.com
Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.