SVET Reports
Monday's Markets Update (September 18, 2023)
On Monday, The NAHB Index fell to its lowest level in five months, and the Nasdaq traded close to its opening as traders hesitated to make stakes before the Federal Reserve's next interest rate decision due on Wednesday (a pause is expected at 5.25% - 5.5%). Tesla declined, while Apple increased on strong demand for iPhone 15 Pro handsets. Bitcoin rose on optimism that the FOMC will pause. Other news: One-third of all cryptocurrency hacks are made in North Korea.
Details
Housing market sentiment declined in September to a five-month low, as builders and consumers became less confident due to high mortgage rates. The NAHB Index fell to 45, and the indexes for current single-family home sales and prospective buyers also decreased.
Comment
This is a clear sign that high mortgage rates are taking a toll on builder confidence and consumer demand. As a result, a growing number of buyers are electing to defer a home purchase until long-term rates move lower.
Getting rid of red tapes, and allowing market forces to work will allow builders to increase the housing supply. This is the best remedy to ease the nation's housing affordability crisis and curb shelter inflation.
When there is more supply of housing there will be more competition among sellers to attract buyers. Of course, there are other factors that contribute to the housing affordability crisis, such as rising incomes and low interest rates. However, increasing the supply of housing is one of the most important things that can be done to make housing more affordable for everyone.
Crypto
North Korean government-backed hackers have stolen over $340 million (~30%) in cryptocurrency this year from crypto exchanges and dapps (Chainalysis).
Comment
One-third of all crypto-related crimes are associated with repressive regimes that governments cannot influence, despite their best efforts. At the same time, the SEC accuses all of us of being criminals without a hint of proof. This is a beautiful system of governance!