Wednesday Reading List
Something’s Gotta Give by Charles Schwab Asset Management
Earnings growth estimates aren’t rising as much as they normally do, likely due to corporate pessimism and a weaker PMI (Purchasing Managers Index). PMI may improve because of the global rate cutting cycle now underway. If it doesn’t, earnings estimates have to be adjusted downwards.
Jobs Report Signals Another Fed Cut This Week by Professor Jeremy J. Siegel
“Last week’s jobs report hit a “sweet spot” for the markets, confirming enough economic cooling to signal potential Fed rate cuts without yet sparking fears of a recession. I expect a 25-basis-point cut from the Fed this week and Powell may set us up for a data-dependent pause in December.” Siegel is optimistic about stocks and concerned about bonds as he’s expecting higher yields ahead.
See also: October Employment: Searching for the Signal in the Noise by Wells Fargo
Americans who bought homes in 2024 were older and richer than ever by CNN
First-time homebuyers were only 24% of all homebuyers, the lowest percentage on record. Cash deals are still high and repeat buyers who have bigger down payments may be crowding out first-timers.
See also: 8 states are back above pre-pandemic housing inventory levels—these 3 states are likely next by Resi Club
This article has a great interactive chart showing inventory by state compared to pre-pandemic levels. New England is sharply down still.
How the 2024 Election Could Affect Your Portfolio by Morningstar
Too long to recap here, but sharing because of the depth of coverage. Morningstar created this resource with links to over 20 articles on potential policy and investment implications related to the election.
Wall Street reacts to the election results by TKer
My friend Sam Ro put together a quick recap of Wall Street reaction to the election results.
See also: The 2024 U.S. Elections: Economic Implications by Wells Fargo
Wells Fargo is expecting the Trump tax cuts to be extended, additional tax cuts, higher GDP growth and inflation, tariffs that would hurt the economy and be inflationary, and uncertain path for rate cuts now given inflationary pressures.
9 Ways to Maximize Your Wealth Before the End of 2024 by Heritage Financial
The team shares 9 actionable tips to focus on in the next 7 weeks or so.
Book Recommendation
Henry V: The Astonishing Triumph of England’s Greatest Warrior King by Dan Jones
Henry V reigned over England for only nine years and four months and died at the age of just thirty-five, but he looms over the landscape of the late Middle Ages and beyond. The victor of Agincourt, he is remembered as the acme of kingship, a model to be closely imitated by his successors. William Shakespeare deployed Henry V as a study in youthful folly redirected to sober statesmanship. For one modern medievalist, Henry was, quite simply, “the greatest man who ever ruled England.”
Boston Corner
Weekend Activities
Things to Do in Boston This Weekend
Things to Do This Week in Boston