Hope all is well with you. U.S. stock indexes rebounded nicely with the NASDAQ surging more than 7%, the S&P 500 adding more than 6%, and the Dow rising more than 5%. Stocks declined for the previous three weeks in a row, and it felt like the economy and financial markets were spiraling downward without end. It’s easy to get distracted from your long-term goals and see reasons to abandon your plan that are not present. Like the illusion below, if you stare at the center long enough your eyes will trick you.
The media has covered gas prices non-stop for the last several months. President Biden is pushing a gas tax holiday. Gas prices are averaging $4.90/gallon. You might think that demand for gas is waning, and that Americans are only driving when they absolutely need to. You would be wrong. A record number of Americans are expected to travel this upcoming July 4th weekend. An estimated 42 million plan to take a road trip of over 50 miles over the holiday weekend.
Reports of the real estate market’s demise have been greatly exaggerated. Yes, U.S. mortgage rates remain volatile as homebuying season ramps up. It’s true the average rate for a 30-year fixed-rate mortgage is climbing now at 5.81%. However, rising mortgage rates are not hurting home prices. The median home price broke through the $400,000 threshold for the first time ever. The median U.S. home price is $407,000.
Negative sentiment persists and I would not be shocked if markets dropped again and retested the lows. It doesn’t mean that the economy is on the verge of collapse or that consumer demand is going to drop off a cliff. Despite all the doom and gloom there is still plenty to be positive about.
My calendar link is below. If you haven’t done so I encourage you to schedule a review.