Inconsistent economic data is making it difficult to judge the state of the economy. Many previously negative indicators are turning around, while others are showing new signs of weakness. Interest rates have fallen from recent highs and investors expect the downwards trend to continue. Millennials are finally aging into homeownership. Increasing millennial demand is a tailwind for the housing market, but with existing homeowners locked into low interest rates new homes will have to supply this demand. Year-to-date performance for the S&P 500 has been extremely narrow. How are companies utilizing artificial intelligence?
1. After a brief contraction, US manufacturing is growing again:
Source: Daily Shot 4/24/2023
2. Credit card delinquencies are on the rise, but current levels don’t seem to be a cause for concern:
3. Historically investors have worried about rising interest rates, now they are hoping for falling rates:
4. Just as with past generations, Millennials will shift from renters to buyers as they age:
5. Home prices have been resilient despite the sustained rise in mortgage rates:
Source: Daily Shot 4/26/2023
6. The housing market needs more supply and homebuilders are working hard to provide it:
7. Apple alone is responsible for nearly a quarter of the S&P 500’s year-to-date return.
8. As we’ve discussed before, the new generation of artificial intelligence is well suited towards problems that AI has struggled with in the past: