Real Interest, Rest Stops, and There They Go Again

Click to download our newsletter in its entirety
Click to download our newsletter in its entirety

Finally, we close with brief comments on Real Interest, Rest Stops, and There They Go Again. First, the drop in interest rates appears to be having a salutary effect on home purchases. According to the latest data from the Mortgage Bankers Association, New Home Purchase Applications rose 17.9% compared to a year ago and Existing Home Purchase Applications rose 7.0%. We see the consumer having Real Interest in purchasing a home again. Second, according to data from truck companies such as JB Hunt and Covenant Transportation, truck volumes fell 7% or more in Q2 as the Global Inventory Correction roared along. For trucking companies, we see their drivers taking extended Rest Stops. And third, large club stores began to raise prices aggressively to offset higher costs and to ensure their profit continues to grow at a rapid rate. This is similar to what occurred in 2005 – 2008. Examples of products with large price increases recently include parmesan cheese up 14%, hot dogs up 11%, office paper up 10%, tuna fish up 18%, and guacamole up 33% to 54% (as the lower cost packaging size disappeared from the store). For the consumer, it is There They Go Again.



Confidential – Do not copy or distribute. The information herein is being provided in confidence and may not be reproduced or further disseminated without Green Drake Advisors, LLC’s express written permission. This document is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy securities or investment services. The information presented above is presented in summary form and is therefore subject to numerous qualifications and further explanation. More complete information regarding the investment products and services described herein may be found in the firm’s Form ADV or by contacting Green Drake Advisors, LLC directly. The information contained in this document is the most recent available to Green Drake Advisors, LLC. However, all of the information herein is subject to change without notice. ©2019 by Green Drake Advisors, LLC. All Rights Reserved. This document is the property of Green Drake Advisors, LLC and may not be disclosed, distributed, or reproduced without the express written permission of Green Drake Advisors, LLC.

Leave a Comments

Get Your Speaker Package.

Book Paul or Steve as your speaker for your next event. Click Here