Market Watch: Funflation, Rally Trends, and Mortgage Dynamics

Funflation

Market Watch: Funflation, Rally Trends, and Mortgage Dynamics

SPY
S&P 500
Last Week: 0.97% YTD: 20.56% 1 Year: 14.89%
DIA

Dow Jones Industrial Average

Last Week: 1.25%
YTD: 8.68%
1 Year: 5.55%
ONEQ
NASDAQ
Last Week: 0.82%
YTD: 38.03%
1 Year: 27.76% 
Russell 2000
Last Week: 0.58%
YTD: 4.00%
1 Year: -1.63% 
Large Growth

YTD: 26.08%
1 Year: 19.94% 

*As of 10/31/2023

Large Value

YTD: .56%
1 Year: 2.86% 

*As of 10/31/2023

Entertainment Costs

A measure called “funflation” tracks the costs of entertainment and live sporting event prices. Sports ticket prices were over 25% higher year over year from October 2022 to October 2023. Coming out of the COVID-19 pandemic, we have seen consumers willing to spend a premium to do the things they want and enjoy. The Consumer Price Index (CPI) tracks inflation, which is averaging 3.2% on an annual basis, though the cost of live events and sports is not in that measurement.

Market Rally

The US stock market indices are coming off a four-week winning streak as we come into the last week of November. The rally comes despite consumer spending cooling off and the US 10-year Treasury retreating off its high mark of 5% in October. Retailers have also raised flags that they expect retail sales to slow and have decreased guidance in recent earnings calls. This could be a sign the Fed’s hawkish rate hikes are starting to work. We will be closely watching news on Black Friday retail data.

Mortgage Demand

New mortgage applications jump to a six-week high as interest rates continue to fall. Refinancing also jumped 2% last week, though still down 4% from a year ago. The average 30-year fixed-rate mortgage dropped from 7.61% to 7.41% (loans under $726,200). In the real estate market, we have seen more supply for single-family homes and may start to see demand pick up as rates come down. Many homeowners who bought a home during the pandemic report being “stuck.” They purchased a home they were not necessarily very satisfied with, but due to low interest rates have a lower monthly payment and are not able to move due to the current real estate environment. Will we see them on the move once rates come down?
  • Alex Wolfe

    Alex is a Certified Financial Planner™. He brings nearly a decade of experience working with individuals, families, and business owners. Prior to working for Base Wealth Management, Alex worked for Fidelity Investments and an independent wealth management firm in Venice, FL. Through many years of practice, he specializes in helping clients navigate their financial goals through comprehensive financial planning. He received his bachelor’s degree in economics from Texas A&M University.

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2022 Tax Document Information

As a Base Wealth Management client, you should receive your paper tax documents via mail in the coming weeks. Or, if you previously had an online account with Pershing’s NetX360, you should be able to access your 2022 tax documents through that portal. 

If not, or if you experience any issues, please reach out to Tim O’Brien (tim.obrien@intervestintl.com).

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