What we’re reading (11/4)
“What The Stock Market Typically Does After The U.S. Election, According To History” (CNBC). “Stocks typically rise after a presidential election, but investors need to be prepared for some short-term choppiness first, history shows. The three major benchmarks on average have seen gains between Election Day and year-end in the presidential election year going back to 1980, according to CNBC data. However, investors should not be expecting a straight shot up in the market after polls close.”
“The SALT Deduction Fight Is Coming Back—Whoever Wins The Election” (Wall Street Journal). “The cap, along with much of the 2017 tax law, expires at the end of 2025. This time, no matter who wins Tuesday, it will be a key piece of the tax fight. Cap opponents could have a leg up if lawmakers from New York, New Jersey and California hold a congressional balance of power in a slim majority for either party, commanding a large-enough faction to block bills that don’t address their concerns.”
“Warren Buffett’s Berkshire Hathaway Hoarded Cash, Sold Stocks, And Halted Buybacks Ahead Of The Election” (Business Insider). “Between July and September 30, Buffett’s company grew its mountain of cash, Treasury bills, and other liquid investments to an unprecedented $325 billion (or $310 billion, subtracting nearly $15 billion of payables for Treasury bill purchases). Two years ago, Berkshire had less than $110 billion in cash.”
“How Housing Market Is Mirroring 2007, According To New Report” (Newsweek). “‘The small, but noticeable uptick in new build purchases is more than likely the result of builders offering more aggressive incentives than other properties,’ Beene said. ‘Some builders have offered lower interest rates and prices to get buyers in the doors of new properties.’ Alan Chang, a title and escrow expert, echoed this statement, saying builders have had a big push to incentivize buyers with rate buy-downs or upgrades to ensure inventory is sold as soon as possible.”
“Americans Who Bought Homes In 2024 Were Older And Richer Than Ever” (CNN Business). “The survey found that first-time homebuyers had a median household income of $97,000, up from $95,900 last year, and the median age of first-time buyers rose to 38 years old, a new record high. A generation ago, a typical first-time homebuyer was in their late 20s, according to the report…Unlike most tax-policy disputes, the SALT cap breaks along regional lines, not just partisan ones.”
