Tuesday, October 23, 2018

Rates send U.S. housing, auto stocks into bear market

Shares of U.S. homebuilders and automakers are “over their skis” as a result of higher interest rates, according to Josh Brown, Ritholtz Wealth Management LLC’s chief executive officer. Brown cited the industries in a post Monday on his blog, the Reformed Broker. Bear markets in both groups began after the S&P Composite 1500 Index, combining the S&P 500, MidCap 400 and SmallCap 600 indexes, peaked Jan. 26. The composite’s housing index fell 37 percent from that date through Monday and its auto gauge lost 29 percent.

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