Market Update | FEB 16

DID YOU KNOW?

Top Headlines: Delivered by Leonard Steinberg

February 16, 2024

01 Lured by 5% yields, investors have flooded into money-market funds and other cash proxies, plowing more than $7 trillion into the holdings. But the outlook for cash is dimming as rates seem almost certain to come down this year.

(BARRONS)

02 "You get good judgment gradually over time partly by making bad judgments and having them work out poorly."

– Charlie Munger, stressing the importance of continuous self-improvement.

03 Bitcoin $50,000? DOW $38,800? S&P 500, $5,000? Lots of new records in the markets.... The 10-year Treasury still remains close to 4.2%....

(CNBC)

04 In December, distressed US properties, mainly offices, totaled nearly $86 billion, accounting for 41% of the market. Across all property types, potential distress reached about $235 billion, with over $67 billion attributed to apartment buildings.

A significant portion of these assets, bought at peak prices in the last three years, faces potential distress. Unlike offices, apartments are in short supply and likely to remain so for years. Lenders are modifying loans to forestall foreclosures, improving chances for alternative solutions.

(BLOOMBERG)

05 Mortgage application volume fell 2.3% last week compared with the previous week, according to the Mortgage Bankers Association. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.87% last week from 6.80% the week before as the 10-year treasury inches upwards....

(CNBC)