QE X: Jay Powell, Thou protest too much

In its efforts to not lose control of the policy rate-setting mechanism and manage the repurchase agreement (repo) rate, the US Federal Reserve (Fed) recently announced a new initiative to buy several hundred billion dollars’ worth of Treasury bills over the next few quarters. That it would do something to control the financing rates for […]


CAR on California Housing: Low Rates “Bolster” Sales in September

The CAR reported: Greater buying power amid historically low rates bolsters September home sales, C.A.R. reports Amid the most favorable mortgage interest rates in nearly three years, California’s housing market recorded a third consecutive year-over-year sales increase as month-over-month sales remained essentially flat, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. Closed escrow sales of […]


NAHB: “Builder Confidence Hits 20-Month High”

The National Association of Home Builders (NAHB) reported the housing market index (HMI) was at 71 in October, up from 68 in September. Any number above 50 indicates that more builders view sales conditions as good than poor. From NAHB: Builder Confidence Hits 20-Month High Builder confidence in the market for newly-built single-family homes rose three […]


Retail Sales decreased 0.3% in September

On a monthly basis, retail sales decreased 0.3 percent from August to September (seasonally adjusted), and sales were up 4.1 percent from September 2018. From the Census Bureau report: Advance estimates of U.S. retail and food services sales for September 2019, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, […]


The Green New Deal amendment to the Queen’s Speech

Caroline Lucas tabled the following amednement to the Queen’s Speech resolution this morning: Amendment (a) Caroline Lucas At end add ‘but believe that the measures in the Gracious Speech fail to deliver the urgent transformative action required by the environment and climate emergency; call on your Government to enact a Green New Deal to restructure […]


WTF: Where are the factors?

My colleagues and I have about the fact that factors are long-term drivers of investment returns.  Given this, it’s no surprise that investors are increasingly adopting factor strategies in their portfolios. In fact, we’ve seen record inflows YTD with over $18 billion in investments in iShares Factor ETFs. Logic would follow that investors’ portfolios exhibit […]


Wednesday: Retail Sales, Homebuilder Survey

Wednesday:• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index. • At 8:30 AM, Retail sales for September will be released.  The consensus is for a 0.3% increase in retail sales. • At 10:00 AM, The October NAHB homebuilder survey. The consensus is for a […]