Some say President Obama pretty much did that Wednesday night. However, if we know our historical accusations directed toward presidents, some said President Lincoln started his own country with the Emancipation Proclamation, other’s said President Eisenhower did in 1954 with the inclusion of “under God” in the Pledge of Allegiance and when both Presidents Reagan and George H.W. Bush granted amnesty to “illegals”.
Meanwhile, Native Americans everywhere are sayin, “Whatda?!” Aaaah and Manifest Destiny ya’ll!!
So, this week prepared us for next week’s holiday lightness of economic news. Nothing worth our time was reported on Monday or Friday.
The National Association of Home Builders (NAHB) released its November Housing Market Index on Tuesday, which saw an increase to 58 points from October’s 54 points. While the housing market remains as flat as my European-heavy international ETF, home builder’s response to the NAHB’s survey showed improved future sentiment. With job market improvements, home prices down and historically low interest rates, now’s a good time to consider buying a home if buying a home is in the offing.
Also released on Tuesday was the third quarter Census Bureau’s Electronic Data Interchange’s (EDI) quarterly E-Commerce report. It showed an increase of 4.1 percent over second quarter’s 4.9 percent increase. Year-to-date e-commerce sales increased 16.2 percent and reached a record 6.6 percent of overall retail sales. With this trajectory, it’ll be interesting to see fourth quarter’s e-commerce sales, inclusive of the Christmahannukwanzadan shopping season. If you’re looking for discounts, the WWW is the place to Black Friday. The added benefit is you avoid the madness of crowds. You won’t all get that.
On Wednesday, the NAHB released its October Housing Starts, which saw a 2.8 percent drop from September’s 7.8 percent spike. This oscillation is due to weakness in the multifamily component of the index. That dropped 15.4 percent in October, after September’s 14.9 percent surge. In this market, multifamily homes are aka’d as “apartments”. Speaking of madness, apartments have been popping up at a maddening pace. It’s as if everything is part-time and ownerless. Single-family housing starts increased 4.2 percent in both September and October.
Thursday’s first report was the Bureau of Labor Statistic’s October Consumer Price Index. It remained flat after September’s 0.1 percent increase. This means that, on average, the things you bought didn’t increase month-to-month in October. Excluding food and energy, the CPI increased 0.2 percent, the most in five months. Energy saw a 1.9 percent decrease. Gas dropped 3 percent. As we suggested in our November newsletter, put all gas savings towards savings and investments rather than spending . Save for a few anomalies, prices haven’t increased, so saving or investing savings shouldn’t compete with standards of living.
Then the National Association of Realtors released its October Existing Home Sales Index, which increased 1.5 percent over September’s 2.6 percent increase. Year-over-year, existing home sales were up 2.5 percent. This suggests home buyers are taking advantage of the low prices and low rates mentioned previously. Should this trend continue, increased home prices should follow.
Finally on Thursday, the Commerce Department released its October Leading Indicators Index. This indicator of indicators increased 0.9 percent over September’s 0.8 percent increase. This suggests overall economic improvements and should make us all feel good heading into the le traditional holiday season.
While our concerns with the unwinding of QE3 are abating, we remained concerned, though decreasingly so, with jobs. Wages and European deflation cache our attention. Most data suggests consumers are controlling consumption. Should this be true, save or invest savings.
Have a good Turkey Day!