Wednesday Reading List
The home insurance shock has investors concerned, finds ResiClub-Groundfloor survey by ResiClub
80% of landlords in the ResiClub-Groundfloor Housing Investor Survey said they’re concerned about future home insurance increases. The average rise in 2023 was 11.3%. If landlords pass their insurance increases through to their tenants (which is to be expected) will that hurt the push to 2% inflation the Fed is hoping for based on shelter inflation moderating?
Buyback talk is cheap by Joachim Klement
Share buyback announcements aren’t legally binding. “On average, only 58% of the buyback amount announced by companies is really bought back afterward.” Remember this if part of your investment thesis to buy a stock is based on an announced buyback.
Also, companies have historically been lousy market timers with their stock buybacks as this piece points out – Apple’s huge stock buyback proves one thing: companies are lousy market timers.
The Federal Reserve’s Little Secret by The Atlantic
No one really knows how interest rates work, or even whether they work at all—not the experts who study them, the investors who track them, or the officials who set them according to this important article. Hopefully, it’s the start of a bigger process to find stronger answers on how Fed rate policy impacts inflation and whether this last inflation spike was a Covid-driven supply chain one-off (what people really meant by the lazy transitory tag), too much fiscal stimulus, or something else.
You Might Be Buying Your House at the Top of the Market by The Wall Street Journal
Homes are as overvalued as they were in the peak of the 2000’s real estate bubble according to several metrics. While a 2008 level crash is unlikely, future price gains from here might be challenging.
How Much “Tech” Do You Own? by Charles Schwab Asset Management
A U.S. centric stock portfolio (particularly one concentrated in large cap stocks) means being overweight tech stocks. Tech stocks have been killing it. Tech stocks don’t always outperform. Adding international stocks to your portfolio is one way to diversify away from U.S. tech versus assuming the ride will continue unabated.
How the U.S. economy drowned the swimming pool industry by Axios
The pool boom is over. Estimates are that half as many pools will be built this year as in 2021. You may be able to get price discounts now if you’re installing a pool.
5 Podcast Episodes to Listen to this Week by Heritage Financial
During this week filled with Independence Day celebrations we hope you also find some much deserved time to relax and recharge. Take a walk or grab a lawn chair. However you like to unwind, tune in to recent episodes of our Wealthy Behavior podcast. You’re sure to learn something new!
Book Recommendation
Freedom’s Detective: The Secret Service, the Ku Klux Klan and the Man Who Masterminded America’s First War on Terror by Charles Lane
Freedom’s Detective reveals the untold story of the Reconstruction-era United States Secret Service and their battle against the Ku Klux Klan, through the career of its controversial chief, Hiram C. Whitley
Boston Corner
Ride-hail giants settle, avoiding Massachusetts ballot fight
The Boston Celtics are now for sale
Things to Do in Boston This Weekend
Things to Do This Week in Boston
These are Boston’s cleanest (and dirtiest) beaches