Succinct Summation of Week’s Events 7.22.16 (plus a debt graphic)

This is the Sunday between the two big weeks that are defining a whole new chapter in American politics.  But it is apparent from this week's succinct summation that the tumult on the electoral front is not having any particular impact on the markets as they all hit new all-time highs this week.  But since we're on the topic of national debates, this week's bonus is a reading list containing a very informative graphic about the debt and about the best investments of the past three decades.  Two big surprises here: first, what's leading the pack and, second, well see for yourself.  Let's just say that if you think the U.S. debt is bad, it's nothing compared to the rest of the world.  Interesting reading includes a New York Times article explaining the irony about how green energy is actually thwarting climate change policy and what we can learn from sex workers about courtesy and truth on the Internet.  Hope everyone had a great weekend.  Try to stay cool.

Succinct Summation of Week’s Events 7.22.16

July 22, 2016 4:00pm by Barry Ritholtz

Succinct Summations for the week ending July 22nd 2016

Positives:

1. U.S. stocks hit all-time highs this week, with the Dow rising 9 days in a row.
2. Markit Economics’ flash purchasing manager’s index came in at 52.9 in July, the highest since November 2015
3. Existing home sales rose 1.1% to a 5.570 million annualized rate for June — best number since February 2007. Median prices rose 3.7 percent ($247,700) for year-over-year gain 4.7%
4. Housing index came in at 59, down from 61 previously and below the 60 expected. 59 is still a solid reading.
5. Initial jobless claims came in at 253k, well below the 265k expected. The 4-week moving average is down to 257.75k.
6. GM posts record profits as earnings beat estimates; GE Q2 Earnings & Revenues Beat Estimates, keeps 2016 View Firm;
7. Housing starts rose 4.8% in June to a 1.189 million annualized rate with permits up 1.5 percent to a 1.153 rate; Single-family housing starts rose 4.4% with permits up 1.0%. Multi-family homes starts were up 5.4 percent and permits jumped 2.5%.

Negatives:

1. The MBA mortgage composite index fell 1.3%, after a 7% gain last week. The composite is up 16% y/o/y.
2. Philly fed business outlook survey fell to -2.9, down from 4.7 previously.
3. Bloomberg consumer comfort index fell to 42.9, down from 44.7 previously.
4. Philly index went negative to -2.9, below estimates of +4.5 and down from +4.7 in June.

 10 Sunday AM Reads 7-24-16 - The Big Picture

10 Sunday AM Reads

July 24, 2016 7:30am by Barry Ritholtz

My easy like Sunday morning reads:

• The 10 Most Jaw-Dropping Moments of the Republican Convention (Bloomberg)
• How Renewable Energy Is Blowing Climate Change Efforts Off Course (NYT)
• Gold’s $9.2 Trillion Tailwind Flies in Face of Normalcy (Gadfly)
• How secular stagnation spreads and how it can be cured (Vox EU)
• Cetera, plan sponsor sued for excessive fees in $25 million 401(k) (Investment News)
• Sex workers have created the perfect method for keeping people honest online (Quartz)
• The Republicans waged a 3-decade war on government. They got Trump. (Vox) see also Donald Trump described a dangerous American hellscape that doesn’t actually exist (Vox)
• The new science of cute: a new academic field is trying to pinpoint what makes things cute – and why we can’t resist them (The Guardian)
• CNBC’s Kelly Evans explains: Why I quit social media (CNBC)
• This Flying Car Is Real And It Can Fly 430 Miles On A Full Tank (Business Insider) see also This is the flying car the FAA just approved for test flights in US airspace (Business Insider)

Happy centenial! Be sure to check out our 100th edition of Masters in Business interview this weekend with Jack Schwager, the man who inspired this whole thing.

30 Year Returns

Source: Bloomberg View