Here are the highlights from the July Newsletter:
- While stocks and real estate both look highly valued, no risk measures signal imminent correction. The 30-Year Fixed Mortgage rate remains near lows at 3.88%
- The LGI Active portfolio continues to outperform the broad market, with a 3-Year return of 100%, compared to 24% for the S&P 500.
- Real Estate markets continue to tighten, making finding investment opportunities more difficult. Across the board, forecasted Cash-on-Cash yields for all metropolitan areas dropped significantly last month, primarily due to lowered price growth forecasts.
- Only one Real Estate market forecasts Cash-on-Cash returns above 10%, Memphis, which we focus our in-depth analysis on this month.
- While stock market value measures generally indicate unfavorable conditions for long term appreciation, risk measures are not worrisome. The VIX and St. Louis Fed Financial Stress Index both remain near historic lows.
- Our favorite value stocks for this month our Jet Blue, despite offering no dividend, and Owens Corning. AT&T continues to rate well on value metrics despite poor stock performance in recent months.