Words of Wisdom from Wayne: Americans Regaining Confidence in Homes and Market But Not Economy

Americans Regaining Confidence in Homes and Market… But Not the Economy (CNBC)

Results of the most recent CNBC All-American Economic Survey indicate that 33 percent of Americans expect their home values to rise in the next year. That optimism marks a 9 percent increase over this time last year. It also is the second-highest percentage in the six-year existence of the survey — with the highest number achieved (48 percent) in March 2007. The survey also found that gold still was considered the best investment — favored by 35 percent of respondents — despite the recent surge in equities. The barbarous relic then was followed by real estate at 27 percent and stocks at 21 percent. Finally, regardless of feeling better about their homes and the markets, 60 percent of those polled felt pessimistic about the direction of the economy.  Two steps forward, one step back…

More Confidence Leads to Futures Advances and Excellent Q1 Performance (Bloomberg)

U.S. stock futures rebounded today on better-than-expected durable goods bookings and improved U.S. housing data. Orders for durable goods (those expected to last more than three years) in February grew by 5.7 percent year-over-year. Propelled by the automobile and commercial aircraft industries, this figure blew past estimates of a 3.9 percent increase. The U.S. housing market contributed to the futures boost by posting its best back-to-back monthly performance in four years. In January, new homes sold at an annualized rate of 437,000, followed by February’s annualized rate of 420,000 homes. Should March figures show the continuation of this trend, it will set an impressive Q1 performance and should serve as a motivational tool for investors and analysts alike.

The Greater Rotation: Big Box-sized Profits Are Just Days Away (Bloomberg)

With apologies to bond investors who have been bombarded by mainstream media’s “Great Rotation” messages, there really is a mass migration of investors going on… It just consists of more than investors fleeing bond funds and moving into equities. And this real migration is taking place at the super-store level, where customers are leaving Walmart to get to Kohl’s Corp (KSS)., Safeway, Inc. (SWY), Target Corp. (TGT) and Walgreen’s (WAG).