2<\/sup><\/a><\/u><\/strong><\/p>\n\n\n\nOn a year-over-year basis, prices were up 2% in February. Part of the reason for price support likely stems from mortgage rates, which fell in December of last year and early in 2023. The markets\u2019 expectation for a recession later this year combined with a likely \u2018pause\u2019 in rate hikes from the Federal Reserve eased pressure on long-duration Treasuries and also the 30-year fixed mortgage rate, which finished last week at 6.39% \u2013 down from a peak of over 7%. Another reason for the bump in home prices likely came from inventories that remain low, which has kept markets competitive, particularly in the East and South. Prospective buyers have been increasingly opting for new single-family houses versus existing homes, with sales of new houses jumping to an annual pace of 683,000 in March, the highest level in a year.<\/p>\n\n\n\n
Trends in U.S. Shipping Signal Weakening Overall Demand \u2013 <\/strong>The Dow Jones Transportation Index has fallen about -10% from highs, an indicator we referenced in last week\u2019s Steady Investor. The takeaway, in short, was that markets seemed to be anticipating a slowdown in shipping and freight, a possible sign of economic weakness or a recession ahead. Diesel gas prices may be telling the same story \u2013 wholesale diesel recently fell to $2.65 a gallon, a significant decline from $5.34 last summer. Benchmark diesel futures fell this week to $2.45 a gallon, a 15-month low. Last year, record diesel prices impacted everything from construction sites to goods sold at retail locations, and those higher costs may have dampened the appetite of many producers to ramp up in the new year. It\u2019s also true that many stores and warehouses remain overstocked as a legacy of the goods-driven consumption boom, which is negatively impacting fuel demand. According to federal record-keepers, the impact on domestic demand was over -8% (year-over-year). The upshot to this story is that lower diesel costs may lure many producers back into the market, and encourage a rebound in manufacturing production.4<\/sup><\/p>\n\n\n\nAnother Labor Shortage in the U.S<\/strong>. \u2013 $42.5 billion in new government funding is earmarked to install, repair, and maintain broadband networks across the U.S., as part of President Biden\u2019s infrastructure plan. Millions of American households still do not have access to fixed broadband, and the legislation meant to change that. The problem: there aren\u2019t enough workers available to lay cable and repair wired broadband networks. According to the Fiber Broadband Association, an additional 205,000 \u201cfiber splicers\u201d \u2013 which is what the needed broadband workers are called \u2013 will be needed through 2026 to complete all of the needed projects, which marks a nearly 50% increase from current levels. One potential solution to this labor shortage is for cellphone companies to provide more wireless internet service across rural areas, which would also qualify for the federal subsidies. But the longer-term issue with this approach is that wireless has lower capacity and speeds than fiber, which is likely to create problems as Americans use an increasing amount of data for everyday needs.5<\/sup><\/p>\n\n\n\nThis week brought to the forefront a challenge many investors face \u2013 how to react to volatility<\/strong>. In our view, it is important to remember that volatility is a normal part of the ebb and flow of the markets. We believe the key is not to look for ways to eliminate it, but to develop a mental approach to dealing with it.<\/p>\n\n\n\nOur Volatility guide, \u201cHelping You Manage Market Volatility<\/a><\/strong>,\u201d6<\/sup> will provide you with insights and tips to do just that. Get answers to questions like:<\/p>\n\n\n\n\n- Market downturns can and will occur, but what should you do?<\/li>\n\n\n\n
- How can diversification help you manage volatility without compromising your returns?<\/li>\n\n\n\n
- When volatility is too much for you to handle, how can a money manager help?<\/li>\n\n\n\n
- Can volatility actually be an opportunity?<\/li>\n<\/ol>\n\n\n\n
If you and $500,000 or more to invest and want to get answers to the questions above, click on the link below to download this guide today!<\/p>\n","protected":false},"excerpt":{"rendered":"
Home prices tick higher after seven months of decline, shipping slowdown could portend recession ahead, broadband \u201cfiber splicers\u201d needed.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-12418","post","type-post","status-publish","format-standard","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/12418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=12418"}],"version-history":[{"count":2,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/12418\/revisions"}],"predecessor-version":[{"id":12421,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/12418\/revisions\/12421"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=12418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=12418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=12418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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