Auctions spread out
A huge number of auctions have been held in Melbourne over the past fortnight, which is just helping to thin out the housing market a bit now.
The final clearance rate for Melbourne will be revised down into the 60s, although this weekend's result were solid enough.
Median unit prices for Sydney auctions selling under the hammer have strengthened in anticipation of the impact of the border reopening.
Source: Domain
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A big week or two for stocks with the CAPE ratio in the U.S. now rising to hit 40.
That's by far the highest level in history aside from a short period during the tech bubble, the ratio having increased from 15 at the beginning of this cycle in 2009.
The long run average of 16 may no longer apply these days, though even since 1990 the average has only been around 25 until lately.
Scholars will note this is the first time the CAPE has risen above 40 since the year 2000.
Basically a bubble by by other name, but the Fed still has its foot on the accelerator pedal for the time being, hoovering up bonds and mortgage-backed securities for fun, even now.
The Fed will henceforth taper its support for bond markets and the economy.
Interestingly for all the talk of inflation risks, bond yields have been falling again.
The 10-year yield in the U.S. fell to 1.45 per cent yesterday, which was the lowest yield since September 27.
You can waste a lot of valuable time debating whether something is or isn't a "bubble", of course, since the concept is necessarily a nebulous one.
But in any case, expected returns from stocks are still low, and there's not a great deal of interest in investing in stocks at these levels, for mine, with better choices elsewhere.
