The housing industry has been a drag on the overall economy in five of the last six quarters. That doesn't seem likely to change much. Builder sentiment fell sharply this month amid worries about affordability. Prices have been climbing faster than incomes for years, in part because there aren't enough homes on the market to meet demand. Now with a new tax law that that reduces incentives for homeownership and the Federal Reserve raising interest rates, ownership is even more of a stretch.
| Housing starts rose this morning but only slightly. While I don't think this is 2007/2008 again housing has certainly been a drag on the economy this year. |  |
"I bought shares of Apple because they're a good company."
This is what you call the lazy investors, investing process. No looking at price charts, no analyzing targets just buying and hoping it goes up. In fact, I'd be willing to be most of you reading this probably do the same thing.
Below an excerpt from the WSJ this morning.
Lower-than-expected demand for Apple Inc.’s new iPhones and the company’s decision to offer more models have created turmoil along its supply chain and made it harder for Apple to predict the number of components and phones it needs. Apple slashed production orders for all three of the iPhone models it unveiled in September in recent weeks.Forecasts have been especially problematic for the iPhone XR, Apple’s new lower-price model. Around late October, Apple slashed its production plan by up to a third of the approximately 70 million units it had asked some suppliers to assemble between September and February, Yoko Kubota, Takashi Mochizuki and Tripp Mickle report.
The stock has traded really well the past few years but with all things, it needs to sell off to 're set'. Someone sent me an email yesterday and asked me if I thought it was on sale and ready to buy. I hate these emails so I ignored it. (FYI, it wasn't a student, or I'd had answered).
This is what you call the lazy investors, investing process. No looking at price charts, no analyzing targets just buying and hoping it goes up. In fact, I'd be willing to be most of you reading this probably do the same thing.
Below an excerpt from the WSJ this morning.
Lower-than-expected demand for Apple Inc.’s new iPhones and the company’s decision to offer more models have created turmoil along its supply chain and made it harder for Apple to predict the number of components and phones it needs. Apple slashed production orders for all three of the iPhone models it unveiled in September in recent weeks.Forecasts have been especially problematic for the iPhone XR, Apple’s new lower-price model. Around late October, Apple slashed its production plan by up to a third of the approximately 70 million units it had asked some suppliers to assemble between September and February, Yoko Kubota, Takashi Mochizuki and Tripp Mickle report.
The stock has traded really well the past few years but with all things, it needs to sell off to 're set'. Someone sent me an email yesterday and asked me if I thought it was on sale and ready to buy. I hate these emails so I ignored it. (FYI, it wasn't a student, or I'd had answered).
| I had to share the image to the left as I thought it was funny considering this sell off. Final thoughts on the market: While I think we see a snap back rally this week I don't think this is a situation where 'stocks are on sale' and you go in and buy for the hold. This is a situation where you go in and buy then get rid of them a few days later. If pressing a few buttons to do that seems like a lot of work then you can be sure one of the advisors at the big firms will be glad to take your money and under-perform the market and get their fees, so there's always that. I hope this helped. Daniel Bustamante Coach |  |
