It's the Housing, Stupid
6 days ago
- #housing-market
- #investment-trends
- #meme-stocks
- Debate on 2021-like meme stock activity and record money market fund assets occurring simultaneously.
- Performance of the 100 most shorted stocks nearing 2021 levels, resembling mini GameStop short squeezes.
- Increased retail investor participation in non-profitable tech stocks, similar to 2021 trends.
- Investors also piling assets into money market funds, creating a barbell strategy of risk and safety.
- Housing market issues (high prices and interest rates) diverting cash into meme stocks and money market funds.
- Two investor types: risk-seeking (meme stocks) and risk-averse (Treasuries/money market funds).
- Record number of high-income renters ($1M+ income) due to convenience and broken housing market.
- Housing market described as the worst in lifetimes, with renting often cheaper than buying.
- Three possible future paths for U.S. housing: decade-long fizzle, melt-up and crash, or big build with price declines.
- Political challenges (NIMBYism) make the big build scenario unlikely despite affordability issues.