Wealth – currently California’s economy is larger than the entire global economy of 1870. CA makes up 0.3% of the world’s land surface and 0.5% of the population. 27% of global capital is physical things (items you can touch) 9% is land, and 64% of wealth is ideas. The US economy continues to make up a smaller percentage of the global economy. Does the tightening of intellectual property rights and patents improve our wealth? Or will it benefit the few firms that hold many patents and cause the US to miss out on global research. Currently 70% of research is done outside of the US.

Rates – improved again this week as Coronavirus has caused the S&P 500 to drop 10% in the last 5 days.

Home Appreciation – in December home values increased 3.8% on a year-over-year basis, a gain of 0.3% from November. The Case-Shiller Index factors all homes nationwide, but lower priced homes are appreciated at a faster rate. The FHFA index, which measures homes with conforming loan limits (<$510,400), is up 5.3% year-over-year.

Home Sales – January was a very strong month for signed contracts. Year-over-year it increased by 5.7%, the second highest figure in 5 years and stronger than September or August of 2019.