Salient to Investors: The stock market is massively overvalued based on multiple measures due to crony financial leverage that has created wealth inequality that is now the worst we have seen during multiple generations. The PE ratio of the S&P 500 is 24.9, or 80 percent higher than the historical
READ MORE... →Salient to Investors: Zillow expects 5 percent mortgages by year-end and the 10 places where the percentage of monthly income will be pushed furthest above the average are, in order: Stockton, Ca – where the median price of a home will rise 22.8 percent by September. Honolulu, Ha – where
READ MORE... →Salient to Investors: Thomas Barrack Jr. at Colony Capital said: Institutional landlords building home-rental businesses in the US have yet to figure out the best way to sell their investments as they focus on expansion, while nobody is worried about an exit. 5 companies, including Colony, own 200,000 units, or
READ MORE... →Salient to Investors: Terry Kastens at Kansas State University said: Farmland values are about to stop rising rapidly, flatten out or even fall 10 percent or so, but will not crash. Rising global crop output and stable renewable-fuel standards are leading to a flattening in commodity prices. Rents in some
READ MORE... →Salient to Investors: Guy Cecala at Inside Mortgage Finance said jumbo loans, mostly adjustable but also fixed-rate, increased by 34 percent in the first 9 months of 2013. Greg McBride at Bankrate said cash-rich banks, including Wells Fargo and Bank of America are using ARMs to hedge the loans’ longer-term
READ MORE... →Salient to Investors: Jeremy Grantham at BMO writes: The Greenspan-Bernanke policy of excessive stimulus, now administered by Yellen, will continue, and that the path of least resistance, for the market is up. It would take a severe economic shock to outweigh the effect of the Fed’s relentless pumping of the
READ MORE... →Salient to Investors: Neil Dutta at Renaissance Macro Research said most regions are experiencing strong home-price appreciation off a low base, while cities with the biggest price appreciation are in places that had bigger busts. Fitch Ratings said price gains are unsustainable, with cities such as San Francisco and San
READ MORE... →Salient to Investors: Warren Buffett said the US housing market is coming back but housing starts are not at an equilibrium point, where they match household formation. Buffett said housing will rebound because of increasing population and limited supply. Buffett said the US has made significant progress since 2009 after
READ MORE... →Salient to Investors: Miller Samuel and Douglas Elliman Real Estate said: Hamptons real estate sales are surging, fueling a boom in knockdowns, expansions and quick resales. Hamptons home purchases in Q3 rose 32 percent from a year earlier to the most for a Q3 since 2005. Luxury homes rose 14
READ MORE... →Salient to Investors: RealtyTrac reported: Home purchases by institutional buyers reached a record high of 14 percent of sales in September and all-cash buyers accounted for 49 percent of sales – 10 percent nationwide were properties repossessed in foreclosures, with Las Vegas at 21 percent, Riverside and San Bernardino at
READ MORE... →