Already in Recession?

Are we already in a recession? It’s certainly possible. The economic world typically defines a recession as having two consecutive quarters of negative growth. The measure of that growth? Gross domestic product (GDP). GDP contracted in Q1. And according to the...

Demand Destruction

Depending on the measure, housing has rarely been less affordable. For instance, if one looks at average (median) household income as a percentage of median new home price, homes have never been less affordable. If one simply looks at mortgage payments, however, the...

The Shortest of Memories

The stock market ravaged the tech-heavy Nasdaq in the 2nd half of the year 2000. In just six months, the large-cap growth segment plummeted 40%. It was not nearly as bad for the S&P 500. Just a 10%-plus correction. A monumental buying opportunity, experts...

Should You Mind the Gap?

Some folks do not believe that there’s a housing bubble. Clearly, they’re not minding the gap. What gap? The one between home prices and what people earn. When the Fed forced mortgage rates dramatically lower in the early 2000’s, homebuyers could...

Catching Down

Americans have very little confidence in the economy. In fact, you would have to go back to the banking collapse (2008-2009) to find as much pessimism as there is right now. Just how anxious are consumers? The spread between how we feel about the present (Present...