2016: The Fed Acts? Consumers Spend? Inflation Returns? Possible Economic Impacts?
The Federal Reserve Open Market Committee (FOMC) meets on December 15-16 to consider, among other issues, raising the Federal funds rate. Even the man-on-the-moon, or out of respect to today’s sensitivities—the person-on-the-moon, waits with great anticipation for this well telegraphed decision. The publicity surrounding this decision over the last year seems similar to the noise surrounding Y2K—perhaps with the same muted reaction.
Housing Starts – the Story Is Multi-Family Rentals
Earlier this month, the September housing report showed starts increased 6.5% M-O-M compared to consensus estimates of about 1.5%. Interestingly, this report also shows single-family starts increased only 0.3% M-O-M compared to 17.0% for multi-family starts. And multi-family starts also increased nearly 15% on a year-to-date basis compared to 11% for single-family homes.
Using Options Strategies to Mitigate Volatility
The current bull market in U.S. stocks has now entered its seventh year and continues chugging along. In such a market environment, which has lacked a meaningful correction in either magnitude or duration, it’s easy to become complacent. However, the pull back last October and the choppiness markets experienced in December and January should serve as a reminder that the long period of low volatility has likely ended.