Chris Hill: [laughs] Yeah. Jason Moser: It’s an interesting situation, and I’m sure it was a difficult decision for him. Chris Hill: Yeah. Let’s move on to the housing market. Matt, we got a report this week from Apartment List that said, in December, the cancellation rate for new leases was up more than 30 percent from a year ago. That’s the highest rate since they began tracking this data in 2017. Matt Argersinger: Yeah. It’s really interesting. I mean, it’s really a sign of the times, right? We have so much uncertainty with the pandemic, with the economy, with jobs, with the stimulus, with the vaccine. People are just not sure what to do. So, this is the result, right? They’re not sure if they should sign a lease, they’re not sure if they should buy a home. It’s really interesting because, if you look at the housing market, it’s actually been booming. Home sales, home prices, they’re all up. They’re near record levels. But when it comes to rental market, it’s really been a different story. I think, Apartment List estimated that rental prices are down about one percent year-over-year, which is really unusual. It’s really counter-intuitive, but it just goes to show you that people are just really uncertain right now. I think, this could be a trend that we see continue into 2021. I think, it’s going to be a really interesting year for the housing market. Chris Hill: Yeah. I mean, it’s one of the things that’s been fascinating to me, is that the housing market is so strong. I mean, I think, for a lot of people, it’s been a great place to put their money, and it’s been a great place to park some money, if you’re on the sidelines. But, you know, that’s not the case for everyone. Jason, you and I were talking about this just before the show. A lot of people, if they’re living in a major city, they’re not seeing that same kind of appreciation. Jason Moser: No. I mean, I think, it’s really a tale of two cities, so to speak. I mean, you look at the urban markets, they’re not doing nearly as well as the suburban markets. I mean, when you look at the data, it’s really quite remarkable. I mean, again, talking about the rental market, the urban markets are down anywhere from three to five percent year-over-year, while the suburban markets are actually up anywhere from one to three percent year-over-year. It really is a tale of two cities, and it’s really interesting to see how this will all play out. I mean, I think, for the most part, the suburban markets are going to continue to do well. I mean, you’ve got people who are looking for more space, more land, more room, and they’re willing to pay for it. I think, that’s going to be a trend that we see continue for the foreseeable future. Chris Hill: Yeah. I mean, I think, it’s one of those things where, if you’re in the market for a house, you’ve got to look at the data, you’ve got to look at what’s going on in your area, because it’s not the same everywhere. Matt, you mentioned the Fed. We got a couple of different views this week from two different bank CEOs. Jamie Dimon of JPMorgan Chase, he said he’s not concerned about inflation. He said, “I don’t think it’s going to be a problem”. But then, you had the CEO of Bank of America, Brian Moynihan, he said, “We are concerned about inflation, and we think the Fed is going to have to act”. Matt Argersinger: Yeah. It’s really interesting. I mean, I think, it’s a sign of the times, right? I mean, we have two of the largest banks in the country, and two of the most influential CEOs, having two different views on the same issue. I think, it’s a sign of the times that it’s very difficult to predict what’s going to happen. I mean, the Fed has been pretty clear that, at least for now, they’re going to stay the course. They’re going to keep rates low, they’re going to keep buying bonds, and they’re going to keep the market going. I think, it’s interesting that you have two CEOs, two very smart CEOs, looking at the same data, and coming to two different conclusions. I think, it’s really a sign of the times that, it’s really difficult to predict what’s going to happen in the economy over the next six to 12 months. I think, that’s why the Fed is so important. They are the ones that are going to be making the decisions, and they’re going to be the ones that are really going to be driving the economy. Chris Hill: Yeah. We’ll see what happens. Let’s move on to the stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Dan Boyd: Hey, guys. I’m looking for a little bit of a break from the news, so I’m wondering if there’s a CEO or business leader you’d like to shadow for a day, and why? Chris Hill: Matt Argersinger. Matt Argersinger: [laughs] That is a great question. I’m going to go with Jeff Bezos. I mean, I think, he’s one of the most influential CEOs of our time. I mean, if you look at Amazon, it’s a company that has just been so disruptive, and so innovative. I mean, it’s a company that’s just been able to move into so many different industries, and it’s just been an incredible success story. I mean, it’s a company that’s been able to really drive a lot of the change in the economy, and I think, it’s really interesting to see how Bezos has been able to do that. I mean, he’s a CEO who’s really been able to look far into the future, and think about how his company is going to be able to continue to grow and evolve. I think, it would be really interesting to spend a day with him, and see how he thinks, and how he goes about his business. Chris Hill: Jason Moser. Jason Moser: Yeah. I’m going to go with Warren Buffett. I mean, I think, he’s just a great example of somebody who’s been able to really understand the markets, and really understand the businesses, and really understand the people that run those businesses. I mean, you look at his track record, it’s just remarkable. I mean, I think, it would be really interesting to spend a day with him, and really get a feel for how he thinks, and how he goes about his business. I mean, he’s certainly a person that I look up to, and I think, it would be really interesting to spend a day with him. Chris Hill: Yeah. I mean, I’m with both of you. I mean, I think, those are two of the best investors of our time, and I think, it would be fascinating to spend a day with either of them. Let’s move on to the mailbag. We got a tweet from @MktdMaven. She writes, “I’m a new investor, and I’m looking for stocks that are under-the-radar, but have long-term potential. Any recommendations?” Matt Argersinger: Yeah. I’m going to go with a stock that I’ve talked about before, and that’s Roper Technologies. It’s a company that’s been around for a long time. It’s a conglomerate, it’s made up of several different businesses, and it’s really a leader in industrial technology. I mean, they make things like medical equipment, software, sensors, and they’re really just a leader in a lot of these different industries. I mean, they’re really good at acquiring companies, and they’ve done a really good job of integrating them into their portfolio. I mean, they’ve been able to really drive a lot of the growth in their business, and I think, it’s a company that’s really well-positioned for the future. I mean, I think, it’s a stock that’s really under-the-radar, and I think, it’s a great long-term investment. Chris Hill: Jason? Jason Moser: Yeah. I’m going to go with Regions Financial. It’s a regional bank, based in the Southeast. I mean, it’s been around for a long time, it’s been around since the early 1900s. It’s a stock that I think, is really under-the-radar, and I think, it’s a great opportunity for investors. I mean, they’re really well-positioned in the Southeast, they have a really strong presence in the region, and they’re really well-positioned to benefit from the economic recovery that we’re seeing right now. I mean, they have a really strong balance sheet, they have a really strong capital position, and they’re really well-positioned to benefit from the economic recovery that we’re seeing right now. I mean, they have a really strong balance sheet, they have a really strong capital position, and they’re really well-positioned to benefit from the economic recovery that we’re seeing right now. I mean, they have a really strong balance sheet, they have a really strong capital position, and they’re really well-positioned to benefit from the economic recovery that we’re seeing right now. I mean, they have a really strong balance sheet, they have a really strong capital position, and they’re really well-positioned
The Big Tech industry is facing a significant ripple effect of layoffs as companies like Microsoft and Alphabet have announced tens of thousands of job cuts. These job losses have the potential to have a significant impact on the economy as the companies are some of the largest in the world and have a wide reach. Netflix founder Reed Hastings has also stepped down from his co-CEO role, and cancellation rates in the housing market have been soaring. Bank CEOs have differing views on interest rates, and Procter & Gamble, Nordstrom, and holiday retail data have been released.
Motley Fool senior analysts Matt Argersinger and Jason Moser discussed CEOs they’d like to shadow for a day and under-the-radar trends. They also identified two stocks on their radar: Roper Technologies and Regions Financial. John Rotonti, head of investor training and development at The Motley Fool, spoke with Jurrien Timmer, director of global macro at Fidelity Investments, about the current market cycle and sectors that may hold opportunities for investors.
The pandemic has caused an economic slowdown, and the layoffs from Big Tech companies have the potential to further disrupt the economy. Job losses can lead to decreased consumer spending and a decrease in business activity. It is important to consider the downstream effects of these job cuts and how they will affect the economy.
The Motley Fool Stock Advisor is open to new members for just $99 a year, and there is a quick-start guide to investing in stocks available. History can provide valuable insight into the current market cycle and investors can use this to identify potential opportunities. It is important to stay informed of the latest news and trends in order to make informed investment decisions.
News Source