Wednesday Reading List
What Kind of a Superpower Is India Becoming? by The Ringer
In a recent podcast episode on International Investing, Jeff Kleintop shared the impact India’s rise has had within the emerging markets with its stellar stock market performance that has provided diversification away from China’s. This article recaps an in-depth conversation about the country and shares a link to the full podcast episode.
JBREC: The Northeast housing market is hot, Florida’s housing market is softening by ResiClub
Prices are softening in areas with higher inventory like Southwest Florida and Austin, Texas, but things remain tight and competitive in the Northeast, Midwest, and Southern California. Overall, in most markets home buyers still outnumber home sellers.
Life’s Been Good…for Large Caps by Charles Schwab Asset Management
Halfway through earnings season, large caps are reporting stronger numbers than small caps although future estimates for small caps are improving. Valuations are stretched, but not yet to concerning levels, particularly if we see continued earnings growth. For small caps to do better, we likely need to see interest rate volatility to subside as well as accelerated earnings growth.
See also: Small-Cap and Value Stocks Are Undervalued by Morningstar
Private equity deals defy the lack of rate cuts by Axios
Business owners, you should be aware that despite the uptick in interest rates deal activity hasn’t slowed down and that’s primarily because private equity funds are still sitting on lots of capital they want to deploy. With the economy still strong, valuations still high, and buyers with cash to burn, it could be a good opportunity to consider a sale.
War on the Young by Scott Galloway
Professor Galloway shares that the greatest challenge facing the country right now is what he calls America’s war on the young. By this he means that this generation of kids is more indebted than prior ones and making less than their parents and grandparents at the same age. His solutions: make higher education more affordable and available, shuffle the tax code to benefit workers versus owners, spend government dollars on younger people versus expensive entitlement programs benefitting seniors, save them from big tech algos, and help with mental health.
ICYMI: Your Money This Week
In Your Money This Week we’re looking at the Magnificent Seven, R.I.P. the Goldilocks market narrative, and concerns with housing.