February 2018

The stock market is bouncing off a 10% correction suffered over the last few weeks. The good news is that based upon 2018 earning estimates of 1,480 that puts it just a little over a 16 price earnings multiple. The historical average P/E is just above 15. The key will be whether earnings in 2018 come in as expected.

In regard to real estate, Seattle is on a tear, prices are up 12.71% over the last twelve months. California remains strong, prices in Los Angeles are up 7.01% and in San Francisco they’re up 9.03%. The average across the S&P Case-Shiller 20-City Home Price Index is 6.40%.

Housing starts are only at 1.19 million units, this late in the market cycle you might expect them to be heating up and be above their 50 year average of 1.4 million units. Given they’re not, housing supplies are still in balance with demand, which is good longer term for housing.

Inflation the first half of 2017 was flat and has only started to pick back up. The CPI for the

trailing quarter annualized is 2.58% against the 30-year average of 3.20%. The thing to keep an eye on will be the two-year Treasury, which is up 85% over the six month.

Real Estate	Stock Market	Bond Market	Commodities
Federal Government	National Economy	Business	Consumer

AZ - Phoenix	CA - Los Angeles	CA - San Diego	CA - San Francisco
CO - Denver	DC - Washington	FL - Miami	FL - Tampa
GA - Atlanta	IL - Chicago	MA - Boston	MI - Detroit
MN - Minneapolis	NC - Charlotte	NV - Las Vegas	NY - New York
OH - Cleveland	OR - Portland	TX - Dallas	WA - Seattle

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S&P / Case-Shiller Home Price Index

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