From Compass headquarters:
DID YOU KNOW? Yesterday’s equity markets dip was mostly driven by the fact that the YIELD CURVE inverted. Historically, an inverted yield curve has been viewed as an indicator of a pending economic recession, but that is NOT a certainty. When short-term interest rates exceed long-term rates, market sentiment suggests that the long-term outlook is poor and that the yields offered by long-term fixed income will continue to fall. The yield on 30-year Treasury bonds fell Wednesday to 2.0139%, the lowest level ever. It surpassed the previous mark of 2.0882% set in July 2016. How could this impact real estate markets? Chances are another rate cut may happen sooner.
DID YOU KNOW? Experiences, transparency, and authenticity are the key global trends shaping consumption of luxury goods today, according to Euromonitor analysts Elton Morimitsu and Guilherme Machado. (LuxuryDaily)
DID YOU KNOW? After strengthening modestly this spring amid falling mortgage rates, California home sales downshifted in June, when activity fell 10% below a weak June 2018 – the first month last year to signal a slowdown. The median price paid for a Golden State home in June was a record $508,500 but the gain from a year earlier was less than 2% and one major region, the San Francisco Bay Area, logged an annual decline of around 2%. (Corelogic)
DID YOU KNOW? For the first time since the financial crisis, the benchmark 10-year Treasury yielded less than the two-year note Wednesday morning. That pricing anomaly is known as a “yield curve inversion,” and is seen as an indicator of recession. What’s more, the 30-year Treasury yield has touched a record low of 2.06%. (Barrons)
CORRECTION: Nearly 48.1% of U.S. CFOs believe that the U.S. will be in recession by the 2nd quarter of 2020, and 69% believe that a recession will have begun by the end of 2020, NOT 2019. (Thanks to Bill Carpenter for catching this!)
DID YOU KNOW? For the first time since the survey began in 2017, 59% say Amazon is bad for small businesses — nearly three times the number who say Amazon is good for small businesses (22%). This represents a significant shift from just 2 years ago, when opinion was nearly split between those saying Amazon is bad for small businesses (37%) and those saying it’s good (33%). (CNBC)