Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and the way they fit the unfolding puzzle of evidence:
Dave: No shortage of big market stories this year, but among the most widely felt may be the unprecedented rise in mortgage rates
Source: Bankrate as of 12.27.22
John Luke: leading to a serious housing affordability issue
Data as of 12.23.2022
JD: compounding the situation that current mortgage holders don’t want to give up their mortgages
Data as of 12.23.2022
John Luke: Thankfully, housing debt is muted relative to the situation going into the financial crisis
Data as of 12.23.2022
John Luke: and falling markets have also eaten into a good chunk of outstanding margin debt
JD: much of which seemed to have been tied to a host of speculative Greg Odens
John Luke: Federal Reserve forecasts have generally been laughable
Data as of 12.27.2022
John Luke: so the market-driven 2 Year Treasury rate has historically been better at letting investors know where we might be in the rate cycle
Source: Lyn Alden as of 12.23.2022
Joseph: unlike 2020, the cost of hedging equities hasn’t had a corresponding rise in 2022
Source: Piper as of 12.29.2022
Brad: and while it feels like markets have limped into year-end, it’s actually been a strong bounce back quarter away from growth stocks
Source: Piper as of 12.29.2022
Dave: On that note, no reason to expect a quiet return next week. The New Year generally rolls in with outsized action!
Source: Bianco as of 12.29.2022
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