Consumer Credit – Update September
Historically, consumer credit started 1987 at $653 billion. It is now at a $3,918 billion level. The quality of the credit is much better than historically and has remained stable at a combined default rate of 0.87%.
Investment Strategy Today
Mortgage rates have moved up throughout the year and it is expected to continue, but remain well below longer term averages for both the 30-year and 15-year fixed. Hawaiian Holdings and TTEC Holdings earned a Buy consideration and Brown & Brown, Rollins and Ultra Beauty earned Sell considerations. Government Properties is involved in a merger with Office Properties.
Investment Strategy Today
Exports with U.K. increase 18.3% while imports increase 10.2% annualized thru July. Western Digital and Skyworks earn Buy considerations, CH Robinson, Nordstrom, Knight Swift Transport, Landstar and Sprouts Farmers Market earn Sell considerations.
Investment Strategy Today
Canada/USA surplus grows in the first quarter on an annualized basis. Seacoast Banking and Tetra Tech earn higher fair values while Viad Corporation drops. Cree, INc. and Webster Financial move back to Hold. Wageworked and Viad Corp move to Watch list.
Investment Strategy Today
Trade Balance deficit increased to $50.082 billion in July, deficit increased 8.1% from June and 13.3% from July last year. Current deficit is 12.0% above the average since 2000.