Yesterday we had the leading economic indicators which came in softer than anticipated. For the 8th month in a row LEI came in soft—certainly the equity markets don’t care –just lots of partying.
Today we had existing home sales shown to be heading lower- 14.6% below a year ago–BUT the median price was up 3.4% from a year ago. This is no surprise as the ‘haves’ which many times are older demographics with lots of coin in their pockets continue to vie for limited inventory. The ‘have nots’ are happy to stay put with their 3.5% mortgage–screw’em they say. Mortgage rates are down from the high–but not really enough for folks to list their property, sell and buy something else with a 7.25% rate.
The 10 year treasury remains trading in the the 4.40 area–but drifting slowly lower. Equity prices are drifting lower today–for no particular reason except folks have to pocket a little profit somewhere I guess.
Today I do nothing–maybe stare out the window and watch the birds. My little Bridgewater Bancorporation preferred is taking a decent bounce higher to $16.06–nicely above my buy price yesterday at $15.52 and $15.60 last Friday. Maybe folks are looking for ‘bargains’–but this has happened many times and with thin volume (although heavier today and yesterday) it only take a couple thousand shares to send it back down. We’ll see.