Also in Weekend Reads: How to start investing, an AI boost for an old industry and advice from the Moneyist
Nicollette Roe, Chris Salviati and Mika Alexander are young adults who recently spoke with MarketWatch about their evolving expectations for homeownership.
Traditionally, young adults have been likely to expect to rent during their early working years while they save up for a down payment to buy a home. But a combination of economic factors has caused their thinking to change. Many people in their 30s and 40s now expect to remain renters all of their lives.
Among people ages 18 to 34 who are not homeowners, 29% expect to buy a house within five years, down from 57% in 2015, according to Gallup's polling data.
Jillian Berman and Venessa Wong took a hard look at homeownership and rental statistics and interviewed many young adults who shared their stories about the housing market and talked about their financial goals.
Related coverage:
-- It now takes over 40 years for homeowners to break even on buying a house in these areas
-- 3 charts that show why Americans no longer believe hard work is enough for financial success
More about the housing market
Aarthi Swaminathan covers the residential real-estate market. This week she highlighted a U.S. city that has been one of the most affordable for more than a century.
It's time to get started
Don't Short Yourself - MarketWatch's new weekly newsletter - offers smart tips to help you earn and grow your money.
Regardless of your financial goals, the earlier you begin saving and investing, the better. Time and money are a powerful combination. This week in the Don't Short Yourself newsletter, Genna Contino shared tips on how to begin building wealth, even if you are starting with a very small amount of money. The story also features advice from other MarketWatch journalists.
This nontech industry group is being boosted by AI
The Dow Jones Transportation Average has returned 24.6% this year.
The Dow Jones Transportation Average DJT has returned nearly 25% this year with dividends reinvested. That is more than double the return of the Dow Jones Industrial Average DJIA and well ahead of the 13.8% return for the S&P 500 SPX.
U.S. trucking companies have performed especially well, with price gains of 75% for J.B. Hunt Transport Services $(JBHT)$, 33% for Ryder System (R), 26% for Old Dominion Freight Line (ODFL) and 34% for Landstar System $(LSTR)$.
Claudia Assis explained how the AI buildout has helped pull the trucking industry out of its freight recession.
Thoughts about the bond market
A selloff of long-term government bonds caused the yield on 30-year U.S. Treasury bonds BX:TMUBMUSD30Y to rise as high as 5.34% on Aug. 18, up from a low of 4.60% on March 2. The bonds were yielding 5.21% Friday afternoon after Federal Reserve Chairman Kevin Warsh indicated during his speech at the Jackson Hole Economic Policy Symposium in Wyoming that the central bank might increase interest rates.
Joseph Adinolfi and Joy Wiltermuth used charts to explain why the Treasury bond market has been rallying recently.
More about threats to bond and stock valuations:
-- The ugly math on interest expenses, yields and the $40 trillion U.S. national debt
-- This chart shows exactly why investors should worry about rising yields - even if they don't own any bonds
Related: How a plan to fix a $326 billion hole on bank balance sheets could underpin a Warsh and Bessent Treasury twist
The trouble at Dick's Sporting Goods spreads to other companies
Shares of Dick's Sporting Goods fell nearly 31% on Aug. 25, when investors were disappointed as the company lowered its sales and profit outlook. But Dick's remains profitable, trades at an attractive valuation to expected earnings and is rated a buy by a majority of analysts covering the stock.
Shares of Dick's Sporting Goods $(DKS)$ fell 30.7% on Tuesday after the company disappointed investors with its quarterly results and lowered its profit outlook.
Bill Peters dug further into the retailer's results, including the difficulties at Foot Locker, which Dick's acquired last year. He also covered how the reaction to Dick's results spread to other companies that make or distribute athletic footwear.
A stock screen - 52-week lows
Although Tuesday's decline for Dick's Sporting Goods sent the stock to a 52-week low, the majority of analysts polled by LSEG who cover the stock still rate Dick's a buy or the equivalent. Maybe all the bad news is priced into the stock, setting it up for a rebound.
This stock screen yielded a list of 12 stocks that are near 52-week lows and favored by analysts who expect double-digit price rebounds.
More stock screens:
-- These growth stocks are still cheap, despite the S&P 500 being near a record high price-to-sales valuation
-- 20 stocks likely to lose money even if the bull market continues
Related: Has AI gotten any better at stock picking?
Nvidia faces challenges simply from being so large
How big is too big, and what special risks does a company such as Nvidia (NVDA) face as it provides funding to its own customers to buy its graphics processing units?
David Weidner looked into Nvidia's risks from its market dominance and circular financing deals.
More Big Tech coverage:
-- Why AMD can beat rivals Intel and Nvidia in the market for data-center CPUs
-- Meta dodges 'Big Tobacco' nightmare with $18 billion settlement in child-safety lawsuit
-- What to know about Hugging Face, the open-source AI startup reportedly catching Nvidia's eye
-- Salesforce's stock rockets 20% and gives the software sector a major lift
Where should you retire?
Pensacola, Fla., home to Perdido Key Beach, is one of five U.S. cities highlighted by Edd and Cynthia Staton as affordable retirement destinations.
Edd and Cynthia Staton decided in 2010 to retire and move to Ecuador. But they know that moving abroad isn't for everyone, so they did some research and came up with a variety of affordable cities in the U.S. where you might want to spend your retirement.
Retirement planning: I'm 56 with $1.4 million and want to retire in 5 years. Do I move to California, New York or overseas?
Should you pay for investment advice? If so, how much?
Aditi Shrikant and Beth Pinsker tackled the above question:
-- Is my wealth manager's fee too high? I'm paying 1.2%, but he's not doing much.
-- Should I use my financial institution's free advisers or hire someone independent?
The Moneyist and the messy inheritance
Quentin Fottrell is the Moneyist.
This week Quentin Fottrell - the Moneyist - helped a MarketWatch reader whose husband is the executor for his father's estate, which includes his house, in which two people have been renting rooms. Here's how difficult it might be to get the lodgers to leave so the house can be sold.
More from the Moneyist:
-- 'The relationship quickly deteriorated': My friend's lawyer settled his injury case without his consent. What can he do?
-- Does a 2% beneficiary inherit 100% if the 98% beneficiary dies in a car accident?
-- My friend was laid off and lost her health insurance. How can she find affordable coverage?
Want more from MarketWatch? Sign up for this and other newsletters to get the latest news plus advice on personal finance.
-Philip van Doorn
Comments