Latest news with #cyclical
Yahoo
23-07-2025
- Business
- Yahoo
More tough news for buyers. Home prices jumped to all-time highs in June.
US home prices spiked to all-time highs in June, NAR data shows. Existing home sales declined 2.7% in the month. Data earlier this month showed sellers are more often delisting homes rather than dropping prices. It's a tough time to be a homebuyer in the US, and, unfortunately, it got tougher in June. The National Association of Realtors said on Wednesday that existing-home prices jumped last month, with the median price reaching $435,300. While only a 2% increase from June 2024, it's the highest home prices have ever been. As prices trend up, sales of existing homes have been moving in the opposite direction. NAR data shows that sales fell 2.7% in June. While month-over-month sales rose slightly in the West, they declined in the Northeast, Midwest, and South regions. NAR Chief Economist Lawrence Yun attributed the price surge to years of undersupply, stating that the trend is prohibiting new buyers from entering the housing market. "High mortgage rates are causing home sales to remain stuck at cyclical lows," Yun stated. "If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners." It's the latest stat that shows how brutal the market is for homebuyers, even as other recent data suggested things could be tilting in their favor. Inventory is piling up, which often suggests prices could edge down. However, data shows that sellers are more often pulling their homes off the market rather than negotiating or lowering prices. Others have noted that the high barriers to homeownership are particularly tough on first-time buyers, many of whom are younger. The high costs of owning a home have compelled a growing number of Gen Z members to view renting as a better alternative. NAR data shows that housing costs are rising even as economic uncertainty remains high, and the market could enter an even deeper freeze after years of sluggish sales activity. On a somewhat hopeful note, Yu said that one factor could help push the US housing market out of its slump. "If mortgage rates decrease in the second half of this year, expect home sales to increase across the country due to strong income growth, healthy inventory, and a record-high number of jobs," he stated. Read the original article on Business Insider
Business Insider
23-07-2025
- Business
- Business Insider
More tough news for buyers. Home prices jumped to all-time highs in June.
It's a tough time to be a homebuyer in the US, and, unfortunately, it got tougher in June. The National Association of Realtors said on Wednesday that existing-home prices jumped last month, with the median price reaching $435,300. While only a 2% increase from June 2024, it's the highest home prices have ever been. As prices trend up, sales of existing homes have been moving in the opposite direction. NAR data shows that sales fell 2.7% in June. While month-over-month sales rose slightly in the West, they declined in the Northeast, Midwest, and South regions. NAR Chief Economist Lawrence Yun attributed the price surge to years of undersupply, stating that the trend is prohibiting new buyers from entering the housing market. "High mortgage rates are causing home sales to remain stuck at cyclical lows," Yun stated. "If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners." It's the latest stat that shows how brutal the market is for homebuyers, even as other recent data suggested things could be tilting in their favor. Inventory is piling up, which often suggests prices could edge down. However, data shows that sellers are more often pulling their homes off the market rather than negotiating or lowering prices. Others have noted that the high barriers to homeownership are particularly tough on first-time buyers, many of whom are younger. The high costs of owning a home have compelled a growing number of Gen Z members to view renting as a better alternative. NAR data shows that housing costs are rising even as economic uncertainty remains high, and the market could enter an even deeper freeze after years of sluggish sales activity. On a somewhat hopeful note, Yu said that one factor could help push the US housing market out of its slump. "If mortgage rates decrease in the second half of this year, expect home sales to increase across the country due to strong income growth, healthy inventory, and a record-high number of jobs," he stated.
Mint
23-07-2025
- Business
- Mint
FPI selloff worth ₹6,000 crore fails to dent Indian stock market: Are big boys of D-Street losing control?
FPI Selloff: There was a time when foreign portfolio investors (FPIs) sneezed — and Indian investors' portfolios caught a cold. But over the last few years, this trend hasn't held ground. The latest FPI selloff in July is one such example. According to NSDL data, FPIs have become sellers in the Indian stock market this month, offloading stocks worth ₹ 5,826 crore so far. This selling, which followed three months of heavy buying, has failed to dent the benchmarks Sensex and Nifty like it used to, as indices have lost just over 1% this month. FPIs sold heavily in IT, FMCG, consumer durables, autos, and healthcare, while rotating into services, metals, oil & gas, capital goods, and financials. They also remained active in IPOs, attracted by better valuations and long-term growth potential. Meanwhile, so far in 2025, even as FPIs offloaded stocks worth ₹ 83,727 crore, Sensex has added 5% to its value, highlighting the reduced clout of the "Big Boys" of Dalal Street and a power shift that's underway. Experts believe the robust domestic institutional and retail participation is increasingly cushioning the impact of foreign selling. "The modest decline in benchmark indices despite significant FPI outflows reflects the growing resilience of domestic markets. Moreover, sectoral rotation within FPI activity suggests a shift rather than a complete exit, with inflows continuing in select cyclical and primary market opportunities," said Anil Rego-Founder and Fund Manager at Right Horizons PMS. The growth in demat accounts, which was tremendous during the pandemic (+35.4% in FY21 and 63.4% in FY22) as retail participants flocked to the equity markets in the face of adversity, has persisted post the pandemic also, rising 27.8% in FY23, +31.9% in FY24 and +26.7% in FY25, according to data shared by JM Financial. The demographic shift is clearly visible as retail participants with <30-years age group has risen from 22.6% of total in FY19 to 39.5% in FY25, while the share of the 60+ population has meaningfully fallen from 13.1% in FY19 to 7.1% in FY25. One obvious reason for the same is the rise of mobile-first broking platforms and increased SIP penetration in India. Not just direct equity, but retail investors have also participated via mutual funds. Total mutual fund folios rose from 42 million in FY15 to 235 million in FY25 at a 19% CAGR, driven primarily by retail segments. "SIPs have emerged as a stable retail inflow mechanism, with annual SIP contributions rising from ₹ 43,900 crore in FY17 to ₹ 2,89,400 crore in FY25. India's mutual fund AUM has expanded from ₹ 17.5 lakh crore in FY17 to ₹ 65.7 lakh crore in FY25, registering a CAGR of 18%, outpacing the Nifty 50's CAGR of 12.5% over the same period," said JM Financial. Analysts also pointed out that, unlike before, retail investors are staying put during cycles of market downturn, lending support during such periods. "SIPs are touching record highs, whereas demat accounts have also crossed 15 crore accounts in 2025. Retail participation has increased in direct equity, ETFs and IPO applications as well. Also, SIP flows tend to be sticky in market downturns as well," said Vaqarjaved Khan, CFA - Sr. Fundamental Analyst, Angel One. Deepening capital markets, growing SIP flows, and increased retail trading also reflect a shift from physical to financial assets. Rego said improved financial literacy, digital access, and favourable demographics are accelerating this trend. Retail investors now play a stabilising, long-term role in markets, reducing reliance on foreign capital and their consistent participation has enhanced market resilience, while contributing to India's growing prominence in the global equity landscape, Rego added. While FPI selling Indian stocks has failed to dent the stock market in any meaningful way, it has stalled the upward trajectory of the Indian stock market. Analysts believe FPI flows are likely to remain selective and event-driven in the near term, influenced by global macro volatility, US rate trajectory, and trade dynamics. However, India's relative macroeconomic strength, policy continuity, and earnings visibility provide a strong long-term case for renewed allocations, said Rego. "While short-term caution may persist due to elevated valuations in some segments, FPIs are expected to favour sectors aligned with capex, manufacturing, and domestic consumption themes. As global uncertainties stabilise, incremental inflows could resume, especially if supported by moderation in global yields and clearer risk appetite," he added. Khan believes that while FPIs may move out of India on account of a tactical exit but structurally they are very bullish on India as it continues to remain one of the best placed economies globally and in terms of best GDP growth rate and retail inflation of less than 2.5%. He added that once there is a clearer path of rate cut by the US Fed and global liquidity improves, then India is expected to become a top destination among EM economies on account of strong growth, governance and continued capex cycle.
Mint
23-07-2025
- Business
- Mint
FPI selloff worth ₹6,000 crore fails to dent Indian stock market: Are big boys of D-Street losing control?
FPI Selloff: There was a time when foreign portfolio investors (FPIs) sneezed — and Indian investors' portfolios caught a cold. But over the last few years, this trend hasn't held ground. The latest FPI selloff in July is one such example. According to NSDL data, FPIs have become sellers in the Indian stock market this month, offloading stocks worth ₹ 5,826 crore so far. This selling, which followed three months of heavy buying, has failed to dent the benchmarks Sensex and Nifty like it used to, as indices have lost just over 1% this month. FPIs sold heavily in IT, FMCG, consumer durables, autos, and healthcare, while rotating into services, metals, oil & gas, capital goods, and financials. They also remained active in IPOs, attracted by better valuations and long-term growth potential. Meanwhile, so far in 2025, even as FPIs offloaded stocks worth ₹ 83,727 crore, Sensex has added 5% to its value, highlighting the reduced clout of the "Big Boys" of Dalal Street and a power shift that's underway. Experts believe the robust domestic institutional and retail participation is increasingly cushioning the impact of foreign selling. "The modest decline in benchmark indices despite significant FPI outflows reflects the growing resilience of domestic markets. Moreover, sectoral rotation within FPI activity suggests a shift rather than a complete exit, with inflows continuing in select cyclical and primary market opportunities," said Anil Rego-Founder and Fund Manager at Right Horizons PMS. The growth in demat accounts, which was tremendous during the pandemic (+35.4% in FY21 and 63.4% in FY22) as retail participants flocked to the equity markets in the face of adversity, has persisted post the pandemic also, rising 27.8% in FY23, +31.9% in FY24 and +26.7% in FY25, according to data shared by JM Financial. The demographic shift is clearly visible as retail participants with <30-years age group has risen from 22.6% of total in FY19 to 39.5% in FY25, while the share of the 60+ population has meaningfully fallen from 13.1% in FY19 to 7.1% in FY25. One obvious reason for the same is the rise of mobile-first broking platforms and increased SIP penetration in India. Not just direct equity, but retail investors have also participated via mutual funds. Total mutual fund folios rose from 42 million in FY15 to 235 million in FY25 at a 19% CAGR, driven primarily by retail segments. "SIPs have emerged as a stable retail inflow mechanism, with annual SIP contributions rising from ₹ 43,900 crore in FY17 to ₹ 2,89,400 crore in FY25. India's mutual fund AUM has expanded from ₹ 17.5 lakh crore in FY17 to ₹ 65.7 lakh crore in FY25, registering a CAGR of 18%, outpacing the Nifty 50's CAGR of 12.5% over the same period," said JM Financial. Analysts also pointed out that, unlike before, retail investors are staying put during cycles of market downturn, lending support during such periods. "SIPs are touching record highs, whereas demat accounts have also crossed 15 crore accounts in 2025. Retail participation has increased in direct equity, ETFs and IPO applications as well. Also, SIP flows tend to be sticky in market downturns as well," said Vaqarjaved Khan, CFA - Sr. Fundamental Analyst, Angel One. Deepening capital markets, growing SIP flows, and increased retail trading also reflect a shift from physical to financial assets. Rego said improved financial literacy, digital access, and favourable demographics are accelerating this trend. Retail investors now play a stabilising, long-term role in markets, reducing reliance on foreign capital and their consistent participation has enhanced market resilience, while contributing to India's growing prominence in the global equity landscape, Rego added. While FPI selling Indian stocks has failed to dent the stock market in any meaningful way, it has stalled the upward trajectory of the Indian stock market. Analysts believe FPI flows are likely to remain selective and event-driven in the near term, influenced by global macro volatility, US rate trajectory, and trade dynamics. However, India's relative macroeconomic strength, policy continuity, and earnings visibility provide a strong long-term case for renewed allocations, said Rego. "While short-term caution may persist due to elevated valuations in some segments, FPIs are expected to favour sectors aligned with capex, manufacturing, and domestic consumption themes. As global uncertainties stabilise, incremental inflows could resume, especially if supported by moderation in global yields and clearer risk appetite," he added. Khan believes that while FPIs may move out of India on account of a tactical exit but structurally they are very bullish on India as it continues to remain one of the best placed economies globally and in terms of best GDP growth rate and retail inflation of less than 2.5%. He added that once there is a clearer path of rate cut by the US Fed and global liquidity improves, then India is expected to become a top destination among EM economies on account of strong growth, governance and continued capex cycle. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Yahoo
22-07-2025
- Business
- Yahoo
1 Magnificent Dividend King Down 30% to Buy and Hold Forever
Key Points Nucor is a U.S. steel giant and Dividend King. The company is diversified and has a strong business plan. Its stock is cyclical and out of favor right now. 10 stocks we like better than Nucor › Nucor (NYSE: NUE) is one of the largest steelmakers in North America, but that's not what separates it from the pack. The big story here is the fact that Nucor is a Dividend King. And right now, the stock appears to still be in Wall Street's doghouse, which could be a buying opportunity for investors whose holding period is forever. Here's what you need to know. What does Nucor do? Nucor makes steel, but this is only part of the story. The other piece is that it uses electric arc mini-mills in the process. This technology tends to be more flexible than blast furnaces that make primary steel. Thus, the company can ramp production up and down based on demand more easily. That allows it to support its profit margins through the industry's cycles. The steelmaking cycle is worth considering. Demand and pricing often rise and fall along with economic activity. Given the industrial importance of steel, that makes sense. However, it also means that the business is a bit volatile and the stock is prone to wide price swings. Right now, the stock is down around 30% from the peaks it achieved in 2024. That sounds like a huge decline, but it is actually an improvement from the more than 40% it had been down before a rally. Declines of 40% or more occurred in 2020 and 2022. So essentially, this is really just a normal swing. But that doesn't mean you should ignore the opportunity here. Nucor is a Dividend King Despite the inherent volatility of the steel sector, Nucor has managed to increase its dividend every single year for over 50 consecutive years. A company doesn't achieve Dividend King status by accident; it requires a strong business model that is well executed in both good markets and bad. In fact, management's goal is generally to produce higher highs and higher lows for its business. It does this with a capital investment plan that focuses on upgrading technology; expanding product offerings; and broadening out to include new, higher margin products. As the company's business grows so, too, does its capacity to generate revenue and earnings. And that leads to higher highs and higher lows on the earnings front over time. With roughly $3 billion in capital spending on tap in 2025, more growth seems likely for the business and the dividend. That said, it is important to highlight one thing: The dividend yield is only 1.7%. This isn't a stock you buy because you need income. It is a stock you buy because you want long-term exposure to the steel sector, and you want to get that exposure via the industry's most reliable dividend stock. You buy Nucor when Wall Street is putting it on sale As a cyclical stock, the best time to buy Nucor isn't when investors are enamored with it. The time to step aboard is when the stock is out of favor, which remains the case today. Would it have been better to buy when the stock was down over 40%? Sure, but 30% is still a material drawdown, and if you are intending to own Nucor for the long term, the price remains attractive. The key to the story, however, is that this Dividend King has proved that its business model can survive just about anything the market and the economy throws at it. Should you buy stock in Nucor right now? Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Reuben Gregg Brewer has positions in Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Magnificent Dividend King Down 30% to Buy and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
