Daily Bullets……For April 22, 2014

·         Housing Bottoming………This morning, March existing home sales came in better than economists’ expectations. The housing market is beginning to accelerate following slowdown from the severe winter impact. The point? There has been too much made over the slowdown in housing which we view as temporary. We expect housing to be an important contributor to economic growth over the next several years. Link: http://money.msn.com/business-news/article.aspx?feed=OBR&date=20140422&id=17543650

 

·         Housing in danger of “overheating”……Zillow’s economist is out this morning claiming the housing market is in danger of “overheating” in selected markets. There are pockets of excessive strength in certain metropolitan areas in which the economy has shown above average strength. The point? While there will be disparities among local markets, we don’t see these disparities curtailing the recovery in housing. Link: http://finance.yahoo.com/blogs/talking-numbers/why-ubs-predicts-a-spring-fling-for-the-housing-market-214030586.html

 

·         Investors still fearful of stocks…….Bankrate.com is out with a new study today showing about 75% of 1,010 people surveyed say they are no more likely to invest in stocks than they were one year ago or two years ago. Is it a bullish sign? Yes because it indicates individual investor sentiment is nowhere near the bullish extremes associated with secular market tops. The point? We think the current bull market has further to run; there will always be periodic corrections.  Link: http://www.cnbc.com/id/101599140