Troubling signs abound in the real estate market. News about new home sales has sent the Dow Jones Industrial Average below 10,000 and safe-haven exchange traded funds (ETFs) higher.
According to the ETF Dashboard, the leading ETFs this morning are those focused on gold, silver and Treasury bonds. Leading the way is iShares Silver Trust (NYSEArca: SLV), which is up 2.5%.
On the heels of yesterday’s report that existing home sales plunged 27% in July is today’s equally discouraging news about new home sales: they fell 12.4%, a record low, in July and prices sank to their lowest point in more than six and a half years. iShares Dow Jones U.S. Home Construction (NYSEArca: ITB) doesn’t seem fazed: it’s up 0.8% today. [Homebuilder ETFs Take Hits.]
Yields on Treasury bonds are sinking faster than a lead balloon. The yield on the 10-year has dropped to 2.46%, close to the level seen in January 2009. The 2-year yield is 0.49%, nearly a record low. That’s not stopping investors from taking them on, though: PIMCO 25+ Year Zero Coupon U.S. Treasury (NYSEArca: ZROZ) is up 1.3% this morning; it yields 3.99%. [Junk ETFs In Your Portfolio.]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.