The current market environment with its low interest rates presents special challenges and opportunities for investors. Howard Lutnick, CEO of the firm that manages the sale and distribution of U.S. treasuries, believes low rates are here to stay for the foreseeable future. So how do investors allocate assets with this in mind? We begin this week with a video featuring Lutnick’s ideas on the subject. We then turn to good news for the U.S. housing market, which is posting its biggest gains in six years. The future seems especially favorable for the railroads, too, which are experiencing a record boom. Our last article looks into how the railways are becoming a key factor in our economic recovery.
Fear And Opportunity In The Credit Markets– Vanderbilt University sponsored a forum on the markets last week which included Howard Lutnick, CEO of Cantor Fitzgerald, as a speaker. His thoughts are especially relevant as his firm manages the sale and distribution of US Treasuries securities. Lutnick believes interest rates will remain low for about five more years and discusses some ideas on asset allocation in this market environment. He begins speaking at 5:20 into the video. http://www.youtube.com/watch?v=hHKydW2y65g
U.S. Housing Prices Post Biggest Gain In Six Years-Housing prices in the 20 biggest cities increased 8.1% in January compared with January 2012, according to the Standard & Poor’s/Case-Shiller index. The increase is the biggest year-on-year gain since mid-2006. Economist Karl Case, who co-created the index, says the data show the housing market is in a healthy recovery. http://www.forbes.com/sites/afontevecchia/2013/03/26/home-prices-growing-faster-than-in-the-build-up-to-the-housing-bubble-case-shiller/
Railroads Plan Record Investment As Industry Booms– North America’s major freight railroads are in the midst of a building boom unlike anything since the industry’s Gilded Age heyday in the 19th century. In fact, rail is becoming the most important part of the commercial-transportation system and is a key factor in our economic recovery. http://www.marketmontage.com/2013/03/27/boom-times-for-american-railroads/
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John R. Day, Bill Ennis and Stephanie Davidson