What we’re reading (3/12)
“Value Investors Finally Have Reason to Celebrate—For Now” (Wall Street Journal). “Value stocks are beating growth stocks by the widest margin in two decades, the latest sign that investors expect the next year to bring a powerful economic rebound.”
“A Buyout Fund C.E.O. Got In Tax Evasion Trouble. Here’s Why Investors Shrugged.” (New York Times). “The muted public reaction from the public pension plans, sovereign wealth funds and endowments that invest in Vista’s funds highlights an unflattering reality of the financial world: Investors are often willing to overlook the misdeeds of money managers if they’re posting solid returns. And in a prolonged era of low interest rates, private equity is one of the few places where big investors can expect better returns than the bond market.”
“The Housing Market Stands At A Tipping Point After A Stunningly Successful Year During The Pandemic” (CNBC). “No one could have predicted it. Not the economists, not the real estate agents, and especially not the nation’s homebuilders. But a pandemic caused an emotional run on housing unlike any other.”
“America Is Running Out Of Houses, Which Means Anyone Who Wants To Buy A Home Right Now Is Battling Sky-High Prices” (Business Insider). “Homes have been selling at a breakneck pace in the year since the coronavirus crisis started. The speed of purchasing shows little signs of slowing, especially given that both increased demand for and reduced supply of houses for sale are the byproduct of several economic and social conditions that are still present. And housing inventory could run out soon as a result.”
“Mortgage Rates Persist In Their Steady Climb” (Washington Post). “According to the latest data, released Thursday by Freddie Mac, the 30-year fixed-rate average rose to 3.05 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate.) It was 3.02 percent a week ago and 3.36 percent a year ago. The 30-year fixed average has risen for four consecutive weeks, something it hasn’t done since April 2019.”
