What we’re reading (12/10)
“The Housing Slowdown Is Wreaking Havoc On The Short-Term Rental Market” (Wall Street Journal). “[W]hile the absolute number of bookings has risen, there has also been a sharp rise in supply of available short-term rental listings in the U.S., up 23.3% in October 2022 compared with October 2021.”
“Nearly 25% Of U.S. Homebuyers Want To Move — This State Is The Top Destination” (CNBC). “With escalating housing costs squeezing out buyers, more people are looking to relocate from big cities to Sun Belt states where homes are cheaper — particularly Florida.”
“Americans’ Wealth Slips Further After Massive Loss In The Spring” (CNN Business). “Americans’ wealth continued to slide in the third quarter as stock prices plunged over the summer — but many Americans still have a healthy financial cushion, compared to pre-pandemic times. That’s according to data from the Federal Reserve released Friday, which showed that the net worth of households and nonprofit organizations dropped by $400 billion to $143.3 trillion in the third quarter. The value of households’ stocks declined by $1.9 trillion, while their real estate holdings increased in value by $700 billion.”
“Bond Investors Swap Mutual Funds For ETFs At Record Pace” (Wall Street Journal). “Worn down from record losses, investors have fled bond mutual funds en masse. But many aren’t quitting on bonds—they are just turning to exchange-traded funds. One main reason: taxes. Some investors sell beaten-down positions in bond funds to harvest tax losses. In many cases this year, investors have opted to put cash into similar ETFs to maintain bond exposure in their portfolios. As long as the securities within the ETF aren’t nearly identical to those in the mutual fund, swapping the so-called wrapper around the holdings allows investors to stay invested, while capitalizing on tax benefits.”
“Dan Loeb Thinks Bath & Body Works’ Board Could Use Some Serious Exfoliation” (Dealbreaker). “Incredible though this may seem, it has been more than four years since Third Point mounted its last proxy fight. Oh, sure, founder Dan Loeb has sent quite a few of his famous barbed letters in the interim, but has shied away from battle, in spite of how well the last one—against Campbell Soup—went. Has he been cured of the need for open combat by the bitter taste of his own medicine? So afflicted by indecisiveness—as demonstrated by his flip-flopping on Disney—that he can’t choose a target, or what he’d like it to do? Oh, no: He’s just been biding his time, for something sweet-smelling but somewhat bloated.”
