Should be considered in light of the Case-Shiller, S&P Housing report just out:
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported 1.0% annual change in July, up from a 0% change in the previous month. The 10- City Composite showed an increase of 0.9%, which improves from a -0.5% loss in the previous month.
The 20-City Composite posted a year-over-year increase of 0.1%, improving from a loss of -1.2% in the previous month.
Before seasonal adjustment, the U.S. National Index,10-City and 20-City Composites, all posted a 0.6% month-over-month increase in July.
After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 0.6%, while the 10-City posted a 0.8% increase and 20-City Composite a 0.9% increase.
“U.S. home prices continued to rally in July 2023,” says Craig J. Lazzara, Managing Director at S&P DJI. “Our National Composite rose by 0.6% in July, and now stands 1.0% above its year-ago level. Our 10- and 20-City Composites each also rose in July 2023, and likewise stand slightly above their July 2022 levels.
Now look at this chart and answer me a simple question:
When the price of housing is going up at a 7.44 percent annualized (monthly gain compounded to annual) does the Fed have any choice but to raise – maybe a half a percent, not a lousy quarter?
Ergo, the market should collapse in a heap because we are getting into the area that the dime-store MBA told you would be the Fed betting against itself as inflation becomes self-reinforcing.
Which is why at 6 AM today in the extended hours, I bought a lot of a 3X short index fund because the rest of this week could get brutal. The trade before the open was already up 90 bucks on an 800 share lot.
Today is Charmin for the Bulls Day.
Write when you get rich…