DC Lite #131
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1. Price drops. "Nationwide, 6.4% of home sellers cut their asking price during the four weeks ending May 26, on average, the highest share since November 2022. The median asking price dropped roughly $3,000 to $416,623 in the last week, the first decline in six months."
2. Trade gap. The US goods trade deficit widened to $99.4bn, the largest in 23 months.
3. Q1 GDP (III). "The corporate profit rate fell slightly in Q1, but it's a volatile measure. Better to look at a 4-quarter moving average, where the after-tax corporate profit is down a bit from its pandemic peak but still high."
4. Crowding vs. valuation. "Less crowded, less expensive markets have less risk priced in, creating better upside/downside capture."
See: The Variant Perception Blog
5. Earnings expectations. “The Mag 7 continues to carry the brunt of the EPS load.”
