Diversification: on Nov. 9th 1959 trace amounts of pesticide were found in cranberries 3 weeks before the big day and it caused nationwide panic. It prompted the release of this catchy tune and the White House served applesauce with their turkey (??). Later congress compensated growers $8.5M for loss of sales but it gutted the cranberry market. Enter Ocean Spray… the cranberry industry adapted and turned consumers on to cranberries year-round with juice and other products. Now China is imposing cranberry tariffs.
Rates – the 10 year Treasury Note dipped nicely this week but is still trading in the lower limits of its upward trend line. Rates improved marginally in most programs.
Shipping – This index tracks the movement of tangible good. In the most recent report the index declined by 4% and Cass Freight is predicting negative GDP as early as Q4.
Fed – Chair Powell says to “hold on” with future rate cuts stating that “We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook.” Basically the Fed looks to keep rates the same unless we see major market changes.
Loan Performance – loans continue to perform really well. Remember that roughly 1/3rd of homes are owned outright so if 0.9% of homes with loans are seriously delinquent (90+ days late) that’s actually only 0.59% of households.