Investment Learning

  • December 27, 2024

Housing market has supply issue, excess demand: Expert

Coldwell Banker Affiliates President Jason Waugh joins Wealth to discuss housing market dynamics heading into 2025. Waugh highlights continued growth in both pending and existing home sales data. "As inventory continues to grow ... certainly we expect affordability to ease," he tells Yahoo Finance. According to Waugh, the housing market faces a supply challenge rather than a demand issue. He emphasizes the need for "more stability" in interest rates, suggesting that once rates become "less volatile," the market will "adapt," leading to increased inventory and stronger consumer confidence. Currently, luxury buyers are dominating the market. Homes valued at $1 million or more experienced a 25% year-over-year increase in November. Waugh notes, "That community is certainly less dependent on the interest rates." To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Angel Smith

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  • December 27, 2024

In 2025, 'last shall be the first': Materials, healthcare

Great Hill Capital chairman and managing member Thomas Hayes joins Catalysts to discuss his optimistic outlook for the healthcare (XLV) and materials (XLB) sectors in 2025. "I think the theme for 2025 is going to be: the last shall be first," Hayes tells Yahoo Finance. He notes that, while healthcare and materials delivered "anemic returns" in 2024, both sectors are projected to be among the top four for earnings growth in 2025, with expected earnings surpassing those of the S&P 500 (^GSPC). In healthcare, Hayes addresses investor concerns about Robert F. Kennedy Jr., who is set to lead the Health and Human Services Department under the Trump administration. Hayes believes these worries are overblown, suggesting it will create a "sell the rumor, buy the news" opportunity. Regarding materials, Hayes downplays tariff concerns, viewing them more as a "negotiating tactic." He recalls Trump's previous presidency, when he campaigned as "the tariff king," noting that, while materials initially sold off after his victory, the sector quickly rallied in 2017 after his inauguration. Hayes expects "more of the same thing" this time around. He names Albamarle Corporation (ALB) as one of the top players in the space. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Angel Smith

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  • December 24, 2024

Mortgage rates may remain above 6% 'even until 2026,' expert says

US new home sales rose 5.9% month-over-month in November, an appreciated uptick as elevated mortgage rates continue to deter homebuyers wishing to enter the housing market. Will these same trends persist into 2025? Walton Global EVP of Capital Markets Katie Hubbard sits down with Catalysts anchors Brad Smith and Josh Lipton to discuss the surge in homebuilder sentiment and where she forecasts home affordability to land in the new year. "Our clients are still... offering incentives like mortgage rate buy-downs because of the elevated mortgages. We don't think mortgages are going to get to 6%, not even until 2026, where that magic mortgage rate number is really 5.5%," Hubbard tells Yahoo Finance. "So... there's still that elevated mortgage is causing affordability issues on both sides." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Luke Carberry Mogan.

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  • December 20, 2024

Media industry deals projected to tick up in 2025

Dealmaking is expected to pick up in 2025. Yahoo Finance Senior Reporter Alexandra Canal joins Seana Smith and Josh Lipton on Market Domination to discuss consolidations in the media and telecom space. Comcast (CMCSA) and Warner Brother Discover (WBD) are among the biggest names set to spin off specific segments and channel packages into independent businesses. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan.

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  • December 20, 2024

Building a resilient portfolio to withstand Trump 2.0 volatility

As investors gauge how President-elect Donald Trump's second term in office will impact markets, Janus Henderson Investors Global Alpha Equity Team portfolio manager Julian McManus joins Seana Smith and Josh Lipton on Market Domination to discuss how to build a portfolio that's resilient to market volatility. "Volatility and resilience are keywords that investors need to have in mind when they construct portfolios," Henderson says, adding, "I think we're just endemically heading into what is going to be a higher volatility regime, I think, for the next year or so, we can expect higher volatility around what policymakers do and the way that currencies and risk assets react to that." The portfolio manager shares two steps for "very thoughtful portfolio construction." He outlines, "First of all, isolating stock selection as the source of risk. So, we want idiosyncratic risk or stock-specific risk to be driving returns." "Secondly, I think a thoughtful approach to risk on a go-forward basis. So, thinking through the major risks facing the portfolio and picking stocks that can be resilient in the face of that." McManus highlights defense stocks (XAR) in the US and globally, as well as sectors like telecommunications (XLC) and utilities (XLU), as opportunities for investors to find resilience amid volatility. Watch the video above to learn about the portfolio manager's market expectations for Trump's second term. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan.

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  • December 20, 2024

Housing market is actually 'balanced, healthy,' realtor explains

Mortgage rates climbed to 6.72% this week, according to the latest Freddie Mac data. DeBianchi Real Estate President and Realtor Sam DeBianchi Laviola joins Wealth to analyze the implications for housing market dynamics. DeBianchi Laviola cites studies suggesting mortgage rates will fluctuate between 6 to 7%, noting that the Federal Reserve's cautious interest rate outlook triggered this week's rate increase. However, she anticipates rates could drop to the 5-6% range in the coming year. "We're actually in a really balanced and healthy market right now but a lot of homebuyers and sellers may not feel that because inventory is still tight," she explains. DeBianchi Laviola adds that "now is a really good time to jump in the market because sellers are generally more negotiable." For those considering entering the housing market, she offers three key recommendations: secure mortgage pre-approval requirements, be prepared to negotiate price points with sellers, and explore various lending products beyond the traditional 30-year fixed mortgage to find the best personal fit. To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Angel Smith

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  • December 19, 2024

Affordability woes in a strong economy: 2025 housing market outlook

With the new year around the corner, Zillow Group (Z) chief economist Skylar Olsen joins Brad Smith on Wealth to talk about her expectations for the housing market in 2025. Olsen says that, looking to 2025, Zillow is "thinking about the affordability challenge, but also thinking about the strength and the economy." She explains, "Put two of those things together, and you've got a lot of buyers in make-it-work mode," meaning buyers are "still trying to take advantage of more affordable" opportunities like buying a home outside of major cities. "We're thinking about the rental market, which will be more important next year because of the continued barriers to the for sale side," the economist says, since there are "generations of people who are going to be renting for longer." As mortgage rates are expected to stay higher for longer, "Zillow does expect probably fewer new listings from existing owners than we did just a couple months ago moving into that next year. That said, we still forecast a steady improvement." To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Naomi Buchanan.

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  • December 19, 2024

Existing home sales pop, signaling buyers are in 'make-it-work mode'

Existing home sales jumped in November, rising 4.8% from the month prior and 6.1% year over year, new data from the National Association of Realtors shows. Zillow Group chief economist Skylar Olsen joins Wealth host Brad Smith to break down what the data signals about the housing market ahead of 2025. "Existing home sales more than matched our optimism for November's numbers. We did expect it to come in probably surprisingly high, [but] I think this more than delivered," Olsen says. She notes Zillow has been tracking a "stronger momentum from new listings, from existing homeowners kind of filling up the shelves, adding to that inventory for buyers, and the strength of the economy pushed buyers through in a make-it-work mode, despite rising mortgage rates to deliver such a stunning showing." The economist says that, in the new year, "we're not going to see [a] big relief from a price correction. Any relief that we hope for from affordability will come in the form of lower mortgage rates." To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Naomi Buchanan.

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  • December 19, 2024

Mortgage rates perk up, snapping three weeks of declines

Mortgage rates pop back up this week following the Federal Reserve's latest interest rate cut, the central bank now forecasting fewer rate cuts to come in 2025. The 30-year fixed-rate mortgage climbs back to 6.72%, up from last week's 6.60% and snapping three straight weeks of rate declines. Yahoo Finance housing reporter Claire Boston sits down with Brad Smith to talk more about mortgage rate trends, in relation to homebuyers' sentiments on the rate environment. Read more of Claire Boston's coverage on mortgage rates. To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Luke Carberry Mogan.

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