Motley Fool Money Deal or No Deal?
Jun 23, 2023
Emily Flippen, a Senior Analyst at Motley Fool, and Matt Argersinger, also a Senior Analyst, dive into the current landscape of mergers and acquisitions. They discuss regulatory scrutiny on major players like Adobe and Microsoft and the implications for shareholders. The duo also sheds light on the impact of upcoming rate hikes and the housing market's persistent inflation challenges. Additionally, they explore dividend investing strategies, especially in the context of Schwab US Dividend Equity ETF and its appeal during market volatility.
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Continued Rate Hikes
- The Federal Reserve likely will continue raising interest rates to combat stubborn inflation.
- This contrasts with earlier market expectations of rate cuts, impacting long-term investments.
Housing Impact on Inflation
- Housing significantly impacts core inflation, particularly rent, a major CPI component.
- Single-family rent growth remains high (7-10%), challenging the Fed's 2% inflation goal.
Homebuilding Surge
- Homebuilding surged despite rising rates, driven by a supply-constrained market.
- Existing homeowners are reluctant to sell due to low, locked-in mortgage rates, increasing demand for new homes.