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Investing Specialists

Residential Investment Still Growing While Businesses Remain Tightfisted

Residential investment growth is likely to outpace business investment spending in 2016 for the second year in a row.

Some markets will be open on Friday, so we will dispense with most of our weekly performance commentary. We will mention that the S&P 500 snapped its five-week winning streak (that produced a 10% gain) with a modest 0.7% loss. Two U.S. Federal Reserve governors, opining that a rate increase might not be far off, put a lid on this week's equity activity and propelled the dollar higher.

Economic news was sparse and inconclusive this week. Housing data showed decent monthly gains in new home sales and disappointing--but not unexpected--declines in existing-home sales. New paperwork requirements and unusual volatility make it difficult to read much into the housing data, although we didn't find anything too worrisome.