Spring 2024 Market Update

April 5, 2024

Good morning,

The economy is having a solid growth pace so far in the first quarter with consumers feeling more confident about their financial well-being than last year. Their resilience in spending, however, is keeping inflation from falling and could create a real problem for the Fed in bringing down interest rates in the near term.

Other macroeconomic indicators such as the households’ purchasing power, on the other hand, suggest that the economy should start pulling back in the near future. As of now, the central bank is still projected to cut rates by 75 bps this year and the first rate-cut is expected to be in June. If the prediction turned out to be true, rates should begin a more sustainable declining trend in May, which should help improve the housing market in the spring home buying season.

If you have any questions regarding our local market, please reach out. Have a great weekend!

Information + Updates

Did You Know?

The first quarter of 2024 drew to a close last week....and yes, we are still standing tall! While wars rage, inflation remains sticky although sharply down from a year ago, the DOW is up over 5.5% in just 3 months, the S&P 500 and NASDAQ are up close to 11%! Bitcoin is up 65%.... yes, those invested in the markets are doing extremely well.

Did You Know?

Can you inflate your way out of debt? Inflation can be a tool to decrease the real value of outstanding debt over time. Imagine if you owe $1 million today and that is 'worth' $1 million of buying power today....but 20 years from now - at 3% annual inflation - you would need over $1,8million to buy the same thing that you can buy today for $1 million..... this can be applied to debt. 20 years from now - at 3% inflation - $1 million worth of debt could 'feel like/buy' close to half of what you can buy today....

Did You Know?

The number of corporate takeovers worth $10 billion and more jumped in the first 3 months of 2024 compared with the same period in 2023, driven by large US deals in the energy, tech and financial sectors (London Stock Exchange Group). 11 such transactions, with a total value of $215 billion, were struck during the quarter, up from 5 worth a combined $100 billion in the first 3 months of 2023. The overall value of global M&A climbed 30 % to $690bn, even as the total number of deals announced fell 31%. (FT)

Did You Know?

Electrical consumption at US data centers alone is poised to triple from 2022 levels to as much as 390 terawatt hours by the end of the decade.....or about 7.5% of the US’s projected electricity demand. (Boston Consulting)

Did You Know?

Americans spend around $120 billion annually on sports gambling. That is roughly $353 per person....if that was invested at 6% compounded it would total $225k in 60 years…..Like Kenny Rogers said…. Know when to Hold’em, know when to Fold’em and know when to walk away...

These are the Compass Entrepreneur Principals in which I fully Subscribe to……

Supply + Demand

As a mom of a women D1 athlete, I have ABSOLUTELY loved watching Women’s Basketball thriving in the media…….The amount of people just now taking note of uber talented players like Caitlin Clark is long past due but I am glad it has arrived.

I think it is interesting that Iowa Basketball ticket prices have sky rocketed 75% since Caitlin Clark started showing us what she’s got…

What I love the most about Caitlin is her humility…… While she is unbelievably talented and focused, she is a team player and does what is best for the team not what is best for her….. I love how she quieted the Iowa crowd during the LSU game prior to the big win…..

I am a HUGE fan!

If you have not watched her, please make a point to in the final 4 starting on Friday…… You will not be disappointed.

LeBron James' Opinion

Open Arms

Pôr da Lua Cheia - June 2023

I was inspired by these photos from Brazilian photographer, @leosens, who, after 3 years, captured a stunning image of Christ the Redeemer “holding” the Moon. I interpret this as holding the world in His arms.

View Photos

1st U.S. Tennis Player to Clinch Olympic Spot

Gauff has accumulated enough points so that she is guaranteed to be among the top four U.S. women’s singles players at the end of the 12-month Olympic qualifying window, which runs through the end of the French Open in early June. A nation can qualify no more than four singles players per gender.

Off to the Races

This was the greatest baby race of all time and possibly the greatest comeback of all time.

Watch Video

Ranking Rates

For many homeowners their mortgage rate has become an asset not a liability. This is our answer to our inventory issue and why the market may take years to balance out unless existing rates break below 4.5% to 5%.

Eclipsed

On April 8th, cities are bracing for the influx of people to see the total eclipse.

Every 11 years or so, the Sun’s magnetic field flips, causing a cycle of increasing then decreasing solar activity. During solar minimum, there are fewer giant eruptions from the Sun, such as solar flares and coronal mass ejections. But during solar maximum, the Sun becomes more active.

In 2017, the Sun was nearing solar minimum. Viewers of the total eclipse could see the breathtaking corona – but since the Sun was quiet, streamers flowing into the solar atmosphere were restricted to just the equatorial regions of the star. The Sun is more magnetically symmetrical during solar minimum, causing this simpler appearance. During the 2024 eclipse, the Sun will be in or near solar maximum, when the magnetic field is more like a tangled hairball. Streamers will likely be visible throughout the corona. In addition to that, viewers will have a better chance to see prominences – which appear as bright, pink curls or loops coming off the Sun.

With lucky timing, there could even be a chance to see a coronal mass ejection – a large eruption of solar material – during the eclipse.