What we’re reading (5/25)
“Rising Rates Are Battering Mortgage Lenders” (Wall Street Journal). “Mortgage giants including Wells Fargo & Co. and Rocket Cos. have trimmed staff this spring. Online lender Better.com has laid off or offered buyouts to about half of its workforce since last December. While home prices continue to rise and Americans are still buying houses, the drop-off in refinancing activity is a giant blow because refinancings made up the bulk of U.S. mortgage originations throughout the pandemic. Some lenders are considering selling themselves, convinced it is the only way to make it through, according to industry executives and advisers.”
“What We Should Remember About Bear Markets” (Behavioural Investment). “Bear markets are an inescapable feature of equity investing. They are also the greatest challenge that investors will face. This is not because of the (hopefully temporary) losses that will be suffered, but the poor choices we are liable to make during them. Bear markets change the decision-making dynamic entirely. In a bear market, smart long-term decisions often look foolish in the short-term; whereas in a bull market foolish long-term decisions often look smart in the short-term.”
“Fed Minutes Point To More Rate Hikes That Go Further Than The Market Anticipates” (CNBC). “Federal Reserve officials earlier this month stressed the need to raise interest rates quickly and possibly more than markets anticipate to tackle a burgeoning inflation problem, minutes from their meeting released Wednesday showed. Not only did policymakers see the need to increase benchmark borrowing rates by 50 points, but they also said similar hikes likely would be necessary at the next several meetings.”
“Great Resignation Regret Is Sweeping The Nation As Workers Who Quit For More Money Quit Again: ‘It Sucks To Be Miserable’” (Insider). “LinkedIn found that among workers who started new jobs last year, the number who had been in their previous position for less than a year rose by 6.5% compared with the year before. That's the highest percentage of job migration the platform has recorded since it started tracking data in 2016.”
“After a Strong 2021, Hedge Funds Report Mixed Returns” (Institutional Investor). “After a strong year of performance in 2021, hedge funds fell back to earth in the early months of the year. The performance records are not surprising given the fallout from the Russia-Ukraine war, rising inflation, and the Federal Reserve’s moves to increase interest rates. Investors did well with hedge funds in 2021, particularly in credit, quantitative funds, and multi-strategy.”
