Displaying items by tag: inflation

Homebuilder sentiment declined to 34 in November as mortgage rates rose for most of the month according to a survey by the National Association of Homebuilders (NAHB). Anything below 50 is indicative of poor sentiment, however there was some optimism that the recent decline in rates may lead to an improvement in conditions. 

Higher rates have stifled demand and increased the cost of financing for homebuilders and developers. Another headwind has been low inventories, resulting in less transactions. Overall, the survey results declined from 56 in July to its current level. However, the survey does not reflect the recent decline in rates following the soft October CPI report. 

All three components of the survey showed weakening with sales conditions falling 6 points to 40, sales expectations over the next 6 months dropping to 39 from 45, and buyer traffic declining from 26 to 21. 

According to Robert Dietz, NAHB’s chief economist, “While builder sentiment was down again in November, recent macroeconomic data point to improving conditions for home construction in the coming months. In particular, the 10-year Treasury rate moved back to the 4.5% range for the first time since late September, which will help bring mortgage rates close to or below 7.5%.” He believes that a decline in rates, coupled with low inventories, could set the stage for a rebound in sentiment. 

Finsum: November’s homebuilder sentiment survey report came out and showed a major decline. However, there is some optimism that the recent decline in rates could lead to a rebound in sentiment in the coming months.

According to a report by Nationwide, women investors are getting more uneasy about their retirement prospects as market volatility continues and inflation remains a concern. Nationwide’s eighth annual “Advisor Authority” study, which is sponsored by its Nationwide Retirement Institute, found that more than 40% of women believe the U.S. is in a financial crisis, with another 24% believing that one is looming. Women are also feeling discouraged about retirement preparedness as the report found that nearly nine in 10 women (87%) said that no matter what they do to manage their finances, they still feel blindsided by events outside their control. That marks a double-digit percentage point increase over last year as only 76% voiced that sentiment in 2022. Nationwide also noted that more than half of non-retired women investors (54%) believe that inflation poses the most immediate challenge to their retirement. Thirty-eight percent also cited economic recession as a disruptor, while 21% pointed to market volatility. The “Advisor Authority” research was conducted online within the U.S. by the Harris Poll on behalf of Nationwide in January. The survey included 511 advisors and financial professionals and 789 investors aged 18 or over with investable assets of more than $10,000.

Finsum:According to Nationwide’s eighth annual “Advisor Authority” study, women investors are more uneasy about their retirement portfolios as market volatility, inflation, and a potential economic recession remain a concern.

According to Man Group boss Luke Ellis, investors should get used to volatility in the markets. Last Tuesday, Ellis predicted inflation will remain high because of strong wage growth in much more volatile markets. He stated, “It will take a lot of years before inflation is put to bed again. We’re in a different paradigm.” He added, “The base effects are running out and we still have very significant wage inflation. It’s not squeezing services [sector] wage inflation, and services is such a big part of the economy. You can’t get consistently to [a] 2 percent [inflation target] when you have 6 to 7 percent wage inflation.” Ellis also said that he did not believe stocks had yet bottomed out. He compared the current environment to the 1970s when the real return from equities after inflation was about zero. His comments come as U.S. stocks fell in February with investors growing concerned that the strength of the economy might require higher interest rates, and the Fed’s preferred measure of inflation rose more than expected in January. In addition, both France and Spain also reported a rise in inflation, beating forecasts.

Finsum:Man Group boss Luke Ellis predicts inflation will remain high due to strong wage growth in volatile markets.

As Yogi Berra likely would say: if it wasn’t a challenge, what kind of challenge would it be?

And if he didn’t say it, one too many fastballs must have ricocheted off his glove and against his noggin.

Point is, what with escalating interest rates, an unpredictable economy and relentless inflation starring you in the kisser, it takes work to manage and grow your financial management business, according to forbes.com.

Well, do abet your efforts, to prepare for the first quarter of the new year, 16 members of Forbes Finance Council dispense advice for business leaders.

A few tips:

1. Focus on liquidity 
2. When calculating the cost base, make space for contingencies 
3. Build up Your forecast by customer
4. Consider your insurance model 
5. When it comes to resiliency planning, pay attention

Business plans, marketing strategies, operational processes and business technology aside, your company’s financial side calls for considerable effort, according to ceoworld.com. Not only that, your company’s longevity and expansion seemingly leans on a solid system of financial management.

You can incorporate quality financial management practices without a hitch in a few ways, including by leveraging the most effective financial software and tools; regularly managing your accounting records and creating seamless billing processes. What’s more, you can establish financial goals that are clear and monitor business performance. 

There’s no question that 2022 was a tough year for investors, but even with all the volatility, investors remain confident in their advisor’s abilities. That is according to the results of State Street Global Advisors’ ETF Impact Survey: Advisor Edition. The survey found an overwhelming majority of investors who work with an advisor remaining confident in their insight and guidance. The percentage of U.S. investors indicating they value their financial advisors’ knowledge and guidance even more during uncertain times held steady at 89% compared to June 2022, when it was 91%. In addition, 81% indicate their advisor has helped them remain confident during this period of rising inflation and market volatility, compared to 86% in June. The survey also revealed that investors are listening to their advisors and not requesting panic-induced trades as 57% of U.S. investors plan to keep their money ‘as is’ and stick to their long-term strategy. Brie Williams, head of Practice Management at State Street Global Advisors had this to say about the survey results, “Helping clients remain confident and committed during times of volatility can be a challenge for advisors whose clients may have a kneejerk reaction to abandon their investment strategy if markets get choppy. Our survey found 86% of investors have discussed market volatility with their financial advisor and 83% say their advisor has informed them of how volatility will affect their long-term financial goals.”

Finsum:A recent SSGA survey found investors remain confident in their advisors’ guidance amid heightened market volatility and rising inflation.