Daily Archives

The housing market isn’t just bad… it is 2008 bad. That is because the money you need to spend to buy a median-priced house is at its worse since 2008.

Yes, home prices are expensive… but there’s more. Mortgage interest rates hit their highest level in seven years. In just one year, the national average 30-year fixed rate went from 3.8% to over 4.4%. Not only will you be paying more for the property, you will be paying more for the ability to buy the property.

No, you don’t make enough… because wages are rising, but not enough to make housing more affordable. However, many people will not be stopped by high prices and interest rates because they just want a place to call home (and they don’t crunch the numbers like us finance geeks). You should view your home as an investment and only invest if the numbers make sense – but for now, let someone else get ripped off.

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We don’t care… about the trade war. That is (or should be) the sentiment for all four FANG stocks which hit record highs on Wednesday. In case you didn’t know, FANG includes: Facebook, Amazon, Netflix, and Google.

Tariffs or no tariffs… we are going to keep using the internet to stream media, shop and search, and stay connected on social media. That may explain why these stocks are doing so well despite the rest of the market reacting negatively to the uncertainty coming from the US-China conflict.

Don’t let us down… when it is time to report quarterly results. Investors believe in these stocks, but only time will tell. Netflix is first to bat – releasing their earnings on July 16^th with the others to follow shortly thereafter.

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No more “tax savings” for online shoppers… because the Supreme Court ruled that states can require online retailers to collect sales tax. Prior to today, states could not collect sales tax from online retailers without a physical presence, such as a warehouse or office, in that state.

Bad news for online retailers… including Amazon, Wayfair, eBay and Overstock, who suffered a dip in their share prices after the announcement. Small businesses are also going to feel the full impact of this news because they are losing a competitive advantage and gaining a headache that comes with complying with the new law.

Don’t be too upset… because you should have been paying use tax on those “tax-free” online purchases when you filed your tax return each year. With that said, this is good news for big box retailers that have been required to charge sales tax online due to their presence in every state (think Walmart). This law may be in full effect by Christmas this year – so maybe get a head start on your online holiday shopping (hint hint).

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The clash of the titans… has added a new participant – Kroger. Kroger shares jumped 10% today after beating Wall Street’s quarterly sales and earnings expectations. What you may find more interesting is that the grocery chain’s digital sales were up 66% compared to last year.

Imagine getting food delivered straight to your door… with no exercise required. That’s right – a few clicks and you have groceries. This is nothing new, but it is becoming the norm for more and more people. Kroger’s ClickList service, which allows for home delivery or curbside pickup, served as a catalyst for the company’s strong performance.

Digital, convenient, and organic… all things millennials love. Kroger has been getting ahead by focusing on these rapidly-growing segments of the market. This is an example of a company that recognizes that their customer-base is evolving and is reacting accordingly. From their business model to groceries, it looks like Kroger has managed to stay fresh.

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