Weekly Round Up 2/28

Story #1: Russia invades Ukraine

Late last week, Russia officially invaded Ukraine. This news immediately rocked financial markets across the world, albeit very temporarily, and several countries imposing sanctions on Russia. The U.S. markets saw a very short shock with the S&P 500 recovering by the end of the day. More important than the financial news, our hearts go out to the people of Ukraine and everyone affected. The human loss significantly outweighs any and all financial loss. To help support those affected by this crisis, click the links below to see organizations supporting Ukrainian families.

Voices of Children: https://voices.org.ua/en/

International Rescue Committee: https://www.rescue.org/

International Medical Corps: https://give.internationalmedicalcorps.org

Story #2: Clogged Ports Aren’t Going Anywhere

Since the beginning of the COVID-19 pandemic, shortages have become the normal. As we are coming out of the pandemic, there has been some hope of a return to normal and that so means re-stocked shelves. The shortages have been caused, in part, due to clogged shipping ports around the US. Ports are unable to unload ships due to labor shortages, equipment shortages and cargo surges. Per a new report by the US Department of Agriculture, this situation won’t be fixed any time soon. In the report, they state that ports will most likely remain clogged for at least another year before proper staffing, equipment, and infrastructure funding catches up with current and projected demand. Unfortunately, in the meantime, that means that supply shortages will most likely continue and this can lead to higher inflation and shrinkflation.

Story #3: Pending Home Sales fall for 3rd Straight Month

It is no secret that the housing market in the US has been white-hot for the last year or longer. Home sales and valuations (or, in some cases, Zestimates) have skyrocketed with record low interest rates, record low inventory, and record high valuations. But, could there be signs that the market is cooling off or slowing down? Per the National Association of Realtors (NAR), pending home sales fell for the third month in a row as of the end of January. But, is this a sign of slowing down or are there just no more homes to buy? Chief economist at NAR, Lawrence Yun, believe the latter, stating “With inventory at an all-time low, buyers are still having a difficult time finding a home” in a press release. This meaning that the market will continue to be on fire, at least for now.