Market Summary

  • House and Senate passes Debt ceiling bill averting a US Default before the deadline of 06/05/2023
  • Non-Farm Payroll Rose to 339,000 for the month of May 2023.
  • Unemployment Rate rose to 3.7% from 3.4 % in April
  • The market is already pricing in a rate pause. The strong job report is an indication that the fed may have to do more to curb persistent inflation. Although inflation is coming down, but it seems to be more sticky than what Jerome Powell would have thought.

Capital Market Update

NVDIA temporarily became the 1st trillion-dollar company in terms of market cap from the chip sector fueled by AI Boom. Is this a bubble or is it really different this time only time will tell.  NVDIA posted non-GAAP EPS of $1.09, beating street estimates by $0.17. Trading at 40x – 50x multiple it’s still considered as cheap by many analysts. As Buffett said, “Price is what you pay value is what you get”. The euphoria around NVDIA AI BOOM is far from fading. 

An interesting chart by @charliebilello. Great strategist if you are not following, please do follow. NVDIA trading at 38x Sales and 200x earnings.

Home Prices Fall according to Case-Shiller Index 

According to the case-shiller index home prices have retreated in the past few months after growing to record high between 2012 – 2022. Prices fell 1.2 percent from the previous year. They have fallen 7.5 percent since last June, when they peaked, but increased from February to March.

Texas had the most vibrant real estate market between 2020- 2022 followed by Phoenix and Jacksonville

According to Storagecafe, Houston followed by San Antonio is the most coveted Real Estate development market. The list also includes Austin, Dallas & Fort Worth. The city of Houston registered the largest number of single-family homes being permitted from 2013 to 2022, around 55,600 units, with 2021 and 2022 the best years of the decade for residential construction.

The other cites outside of Texas that had a vibrant real estate market in the last part of decade were Phoenix at # 6 followed by Jacksonville Florida at #7 , Las vegas, NV at # 8

Home Sellers have started reducing their prices as the housing
market cools off.
Home Sellers have started reducing their prices as the housing
market cools off.

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