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AJA Open House
September 21st | 5:00 pm
Please mark your calendars for our annual Open House which will be on Thursday, September 21. We look forward to this evening every year and cannot wait to spend another night with our clients listening to great music by the Green Hillsbillies and enjoying good food catered by Martin’s.
Click here if you would like to register!
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Stocks Retreat
The major U.S. stock indexes fell around 1% to 2%, giving up most of the ground they had gained in the previous week. In a reversal of the prior week’s results, the NASDAQ underperformed the S&P 500 and the Dow, owing in part to sharp midweek declines for some of the market’s biggest technology stocks.
A U.S. small-cap stock benchmark fell about 3.6% for the week, extending a recent run of underperformance for the asset class. Since the end of July, the Russell 2000 Index has fallen around 7.6% versus a 2.9% decline for a large-cap benchmark, the S&P 500.
The price of U.S. crude oil rose on Friday to the highest level since last November, eclipsing $87 per barrel. The price has climbed nearly 10% over the past two weeks amid renewed oil supply concerns, adding to inflationary pressures across the broad economy.
U.S. stocks on Wednesday sustained their biggest setback of a holiday-shortened week after an economic report fueled fears that inflationary pressures could be regaining momentum, potentially leading to further interest-rate increases. The U.S. economy’s services sector expanded for an eighth consecutive month, exceeding most economists’ expectations.
China’s government reported another monthly decline in both its exports and its imports. In U.S. dollar terms, China’s exports fell 8.8% in August from the same month a year earlier; imports fell 7.3% and have dropped each month so far in 2023.
Concerns about the potential for further interest-rate increases in coming months weighed on prices of 2-year U.S. Treasury bonds. The price decline sent the 2-year note’s closing yield higher to 5.01% on Wednesday, just shy of its year-to-date peak of 5.05% reached in early March. Friday's closing yield was 4.97%.
In the wake of the recent uptick in many U.S. economic indicators, fewer corporate executives are talking about the prospect of a recession. The research firm FactSet searched conference call transcripts from the recently concluded quarterly earnings season and found that just 62 of the companies in the S&P 500 mentioned the term “recession.” That’s well below the 113 that mentioned the term in the previous quarter’s earnings conference calls, and down from 238 a year earlier.
A Consumer Price Index report scheduled to be released on Wednesday will show whether the recent moderation in inflation extended into August. The most recent CPI report for July showed that annual inflation rose slightly to 3.2% from 3.0% the previous month. However, excluding volatile energy and food costs, core inflation slipped to 4.7% from the prior month’s 4.8%.
Source: John Hancock Investment Management
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It’s hard to believe it’s been 22 years since the events of September 11th, 2001. As we honor the memory of the nearly 3,000 lives lost, let us also reflect on the resilience and unity that emerged from the darkness.
Ordinary Americans displayed extraordinary heroism, as firefighters, police officers, EMTs, construction workers, and strangers selflessly aided the wounded amidst the chaos. On this day, and every day, we remember the heroes of 9/11. We will never forget.
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Headwinds for Home Buyers | |
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If you’ve ever taken a long bike ride on a windy day, you know that cycling into a headwind can be difficult and discouraging. Riders spend more energy, travel more slowly, and may give up before reaching their goal. During much of 2023, prospective homebuyers have encountered strong market headwinds, including low inventory, high prices, lots of competition, and rising mortgage rates.
The United States has been experiencing a sellers’ market – where home sellers have an advantage over home buyers. In times like these, it can be difficult to remember that residential real estate tends to be cyclical. While buyers face headwinds today, the market is likely to shift in the future, giving buyers the advantage.
Determining where we are in the cycle has become more challenging because new factors are affecting the market. These include:
The popularity of remote work. “One thing that has surprised me is the permanence of work-from-home. If you look at how many people are going to the office, it has decreased significantly. Even for people who returned to the office, it’s not every day. So if you only have to be in the office a few days a week, you’re willing to have a longer commute. Demand for more space in certain areas of the country has increased, which has boosted house prices,” said Northwestern University Associate Professor Charles Nathanson in an interview with Kellogg Insight.
Concerns about climate risks. Eighty-three percent of prospective home buyers consider the risk of flood, hurricane, wildfire, extreme temperatures, and drought, according to a new survey. Climate risks are considered by 90 percent prospective homebuyers in the West, 85 percent in the Northeast, 79 percent in the South, and 77 percent in the Midwest.
Housing prices remained flat, year-over-year, in June 2023, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. The 20-city index showed prices moving higher in 10 cities and lower in 10 cities.
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AJ Advisors
www.ajadvice.com
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Phone: (615) 709-8709
Fax: (615) 505-3306
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John Stauffer, CFP®
Partner
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Andrew Quinn, CFP®
Partner
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Emily Triano
Operations Associate
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Past performance does not guarantee future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product (including those recommended or undertaken by AJ Advisors, LLC), or any non-investment related content, made reference to directly or indirectly in this communication will be profitable, equal any indicated historical performance level(s), be suitable for your portfolio or individual circumstances, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. You should not assume that any discussion or information contained in this communication serves as the receipt of, or as a substitute for, personalized investment advice. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to their individual situation, they are encouraged to consult with the professional adviser of their choosing. AJ Advisors, LLC is neither a law firm nor a certified public accounting firm and no portion of the content herein should be construed as legal or accounting advice. If you are an AJ Advisors, LLC client, please remember to contact the firm, in writing, if there are any changes in your financial situation or investment objectives or if you wish to impose, add, or modify any reasonable restrictions on our investment advisory services. Until so notified, AJ Advisors, LLC will continue to rely on the most recent information provided. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available upon request. | | | | |
