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The US stock market includes thousands of companies, and it’s easy to get analysis paralysis deciding which one to invest in. To help simplify things a bit for investors, the stock market is divided into several different sectors that include companies with different characteristics.

The different stock market sectors have several advantages, including helping individuals build well-diversified investment portfolios and understand market behavior.

Wondering how different stock market sectors affect your portfolio? The answer is to choose a total market fund that can help you integrate all 11 sectors into your portfolio. “For the vast majority of investors, the most prudent strategy is to diversify broadly across all sectors of the stock market,” said Robert Johnson, professor of finance at Creighton University’s Heider College of Business.

Pro tip

An S&P 500 index or total market fund can help you add all 11 market sectors to your portfolio in a single investment. You don’t have to worry about guessing which industry will perform best.

Keep reading to find out what stock sectors are and why you want to include some of them in your investment portfolio.

What are stock sectors and how many are there?

A stock industry is a group of public companies that share similar business activities, products and services or characteristics. There are 11 sectors of the US stock market.

Stock sectors are created by the Global Industry Classification Standard (GISC), which was developed by S&P Dow Jones Indices and MSCI in 1999. The structure is used globally and forms the basis of many mutual funds and funds exchange-traded (ETF) .

The framework created by the Global Industry Classification Standard (GICS) has four levels that divide companies into 11 sectors, 24 industry groups, 69 industries and 158 sub-industries.

How can I include sectors in my investment portfolio?

The 11 stock market sectors play an important role in the US stock market. And today, it’s easier than ever for investors to gain exposure to an entire portfolio without investing in individual companies.

Sector mutual funds and ETFs allow investors to buy shares in hundreds of companies in a sector with a single investment. For example, if you want to get into the materials sector, a popular ETF is iShares Global Materials ETF (MXI). And a popular sector ETF for financials would be the Financial Select Sector SPDR Fund (XLF).

“If one wanted broad exposure to the US information technology sector, one could choose the iShares US Technology (IYW) ETF,” Johnson said. “The largest holding in this ETF is Apple, which represents 19.2% of the portfolio, followed by Microsoft and Google at 16.3% and 11.8%, respectively.”

Not only are sector breakdowns a convenient way to categorize companies in the market, but they also help investors ensure that they have a well-diversified portfolio. Portfolio diversification is important because it ensures that you have exposure to all parts of the stock market. Not all sectors are correlated, which means that while some sectors are doing well, others may be underperforming.

“While some investors are able to predict which sector will outperform another, it’s difficult to do so,” Campos said.

Rather than trying to guess which sectors will win at any given time, financial experts recommend building a portfolio that includes all of the different sectors, often through a total stock index or S&P 500 index fund. A total market index fund is a great way to maintain diversification in your portfolio, while gaining a share of the top 500 companies in the US stock market.

“For virtually any investor, I would recommend the Total US Equity Fund as the only US equity investment you need,” Campos said.

The 11 stock market sectors

Knowing the different stock market sectors can give you a better understanding of not only your own investment portfolio, but also the stock market as a whole. Below is a description of each of the 11 stock market sectors, along with the largest companies within them.

Energy sector

The energy sector is made up of companies that work in energy sources, equipment and services. Companies in this sector offer a wide range of products and services, including drilling, exploration and energy production, storage and transportation, marketing, refining, etc. The energy sector does not include most renewable energy companies. Instead, it is mostly dominated by oil and gas, along with coal and other consumable fuels.

Some of the biggest companies in the energy sector are ExxonMobil and Chevron.

Materials sector

The materials sector is made up of companies that manufacture and market goods used in manufacturing. The materials sector includes companies that produce chemicals, building materials, containers and packaging, metals, paper and forest products.

Some of the biggest companies in the materials sector are Sherwin-Williams and DuPont.

Industrial sector

The industrial sector includes businesses across a wide range of different goods and services. The industrial sector includes aerospace and defense, construction, engineering, electrical equipment, machinery, business supplies, transportation, infrastructure, and some professional services.

Some of the biggest companies in the industrial sector are Honeywell, Boeing and Union Pacific.

Consumer discretionary sector

The consumer discretionary sector is made up of companies that produce goods that consumers want but do not necessarily need. These companies tend to be cyclical since they do well when the economy is booming, but not when it is down.

“Consumer discretionary goods are luxury items that consumers buy that are not necessary for their survival,” said Mychal Campos, chief investment officer at Betterment. “I’m talking about things like cars, jewelry, sporting goods and electronics.”

Some of the biggest companies in the consumer discretionary space are Amazon, Tesla, and Home Depot.

Consumer Staples Sector

Unlike consumer discretionary products, the consumer staples category is made up of those products that people view as needs and which sell regardless of how the economy is doing. The consumer staples sector includes food, beverages, tobacco, household products and personal care products.

Some of the biggest companies in the consumer staples sector are Procter & Gamble, Walmart, and Coca-Cola.

Health sector

The healthcare sector has two main categories of companies: healthcare equipment and services companies and pharmaceutical and biotechnology companies. The sector covers everything from healthcare equipment, supplies, distributions, services, facilities, technology, research, development, and more.

“Healthcare can include pharmaceutical companies and other medical supply companies,” Campos said. “Cannabis companies are also part of healthcare.”

Some of the biggest companies in the healthcare industry are Johnson & Johnson, UnitedHealth Group, and Pfizer.

Financial sector

The financial sector includes businesses in the fields of finance. Some of the most common industries in this sector include banking, mortgages, financial services, consumer finance, asset management, capital markets, financial exchanges, REITs, insurance, etc.

Some of the biggest companies in the financial industry are Berkshire Hathaway, Visa, and JPMorgan Chase.

Information technology sector

The information technology sector includes a wide range of companies involved in the manufacture, distribution, market, and more, of hardware and software. Some of the most common components of this industry include computer services, software, communication equipment, hardware, electrical equipment, etc.

Some of the biggest companies in the technology sector are Apple and Microsoft.

Communication Services Sector

The communications services industry includes many companies in two broad communications categories: telecommunications services and media and entertainment. On the telecommunications services side, you’ll find wireless, fiber optic, cable, and Internet service providers. On the media and entertainment side, there are media and broadcast companies, as well as entertainment companies, streaming services, social media, and more.

Some of the biggest companies in the consumer services industry are Facebook and Alphabet (Google’s parent company).

Utilities sector

We have already talked about the energy sector, which includes companies that explore, produce and store energy sources. The utilities sector is made up of companies that provide energy sources to consumers. It includes electric and gas utilities, water utilities, and many renewable energy companies.

Some of the biggest companies in the utility industry are Duke Energy, NextEra Energy, and The Southern Company.

Real estate sector

The real estate sector is made up of companies involved in the development and management of real estate. Much of this sector is made up of real estate investment trusts (REITs), but it also includes other real estate rental, management and development companies.

Some of the biggest companies in the real estate industry are American Tower Corp. and Simon Property Group.

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SEC, DOJ investigating billionaire Barry Diller and others over possible Activision insider trading: WSJ https://hudsonberkshireexperience.com/sec-doj-investigating-billionaire-barry-diller-and-others-over-possible-activision-insider-trading-wsj/ Wed, 09 Mar 2022 16:17:42 +0000 https://hudsonberkshireexperience.com/sec-doj-investigating-billionaire-barry-diller-and-others-over-possible-activision-insider-trading-wsj/

The Securities and Exchange Commission and the Department of Justice have launched separate investigations into possible insider trading.

IAC/InterActiveCorp chairman Diller, his son-in-law Alexander von Furstenberg, and music mogul David Geffen bought options to buy Activision stock at $40 each on January 14, days before Microsoft agrees to buy Activision for nearly $70 billion on January 18.

The three spent about $108 million for the right to buy 4.12 million Activision shares. The options are now valued at $168 million and have an unrealized profit of $60 million based on Activision’s current stock price of around $80, WSJ estimated.

In an email to Insider, IAC quoted Diller as saying, “None of us had knowledge of any person or source or anything of a potential acquisition of Activision by Microsoft. We acted simply on the belief that Activision was undervalued and therefore had the potential to go private or be acquired and, if we had such information, we would never have traded it – it forces gullibility to believe that we would have done it 3 days before Microsoft and Activision made their announcement.”

In addition to being von Furstenberg’s stepfather, Diller is also close friends with music mogul and DreamWorks Pictures co-founder Geffen.

The options trades were arranged privately through JPMorgan. The bank reported the transactions to law enforcement after the Microsoft-Activision deal was announced, the WSJ reported.

It’s not just these three whose Activision-related investments have raised eyebrows. Last month, billionaire investor Warren Buffet denied he or his team knew about the deal when Berkshire Hathaway bought a nearly 2% stake in Activision in October and November.

In January, Microsoft announced its acquisition of Activision, the leading video game publisher famous for its Call of Duty franchise, in an all-cash deal valued at approximately $68.7 billion.

It would be Microsoft’s biggest acquisition ever and the biggest acquisition by a video game company in history. The announcement caused Activision shares to jump 26% on January 18.

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Strong Demand and Low Inventory for El Paso County Housing Market https://hudsonberkshireexperience.com/strong-demand-and-low-inventory-for-el-paso-county-housing-market/ Mon, 07 Mar 2022 22:01:24 +0000 https://hudsonberkshireexperience.com/strong-demand-and-low-inventory-for-el-paso-county-housing-market/

EL PASO COUNTY, Colo. (KRDO) – Another month, another record set in the Colorado Springs housing market. El Paso County faces a record inventory of properties for sale, despite record demand. Market experts predict that the area’s population will surpass that of Denver within the next decade.

According to Berkshire Hathaway Home Services, with this demand comes new challenges for the housing market.

“The market is getting very competitive and prices are continuing to skyrocket,” says real estate agent Christian Swift of Berkshire Hathaway Home Services.

Home prices in the Colorado Springs area are soaring to record highs, again, according to a new report from the Pikes Peak Realtor’s Association.

The prices are, in part, due to the low supply of properties and low mortgages, allowing buyers to show their hand on the home they want. Swift says remote work is just one of the factors helping to make Colorado Springs a hot spot.

“The community, the outdoor living activity, I think a lot of people have gone to work remotely and so they want to move to places where they can enjoy the outdoor space but still have amenities like the big cities,” says Swift. “Colorado Springs really has it all.

According to the real estate group, there are less than 400 homes currently on the market. However, an average of 1,000 to 1,200 people move to the area each month.

Currently, homes stay on the market an average of 10 days. This time last year, an available property was on the market for just over two weeks.

Yet Bobby Landry, a licensed real estate broker, says this trend won’t last forever.

“It will evolve, the pendulum will swing,” says Landry. “He will return to a more balanced market. Most statisticians and experts say we should see this change within a year or two. »

His advice to sellers and buyers is to look at the big picture.

“We’re probably at or near the top of the market, while there’s no anticipation of any decline in value,” Landry says.

Housing experts also say the Russian invasion of Ukraine is causing instability on Wall Street and this could impact the future of mortgage rates.

]]> 3 actions that could be slapped by Google’s privacy changes https://hudsonberkshireexperience.com/3-actions-that-could-be-slapped-by-googles-privacy-changes/ Wed, 02 Mar 2022 15:00:30 +0000 https://hudsonberkshireexperience.com/3-actions-that-could-be-slapped-by-googles-privacy-changes/

Remember those Apple (NASDAQ:AAPL) The iOS 14 privacy changes that really shook up some popular internet stocks? Well, it will happen again soon, but this time we’re going to cover Google’s privacy changes.

Google and its parent company, Alphabet (NASDAQ:GOOGNASDAQ:GOOG), unveiled Google’s privacy changes in mid-February. The Privacy Sandbox announcement was made in a blog post by Anthony Chavez, VP of Product Management for Android Security & Privacy.

“Specifically, these solutions will limit the sharing of user data with third parties and will work without cross-app identifiers, including advertising identifiers,” he said. “We are also exploring technologies that reduce the potential for secret data collection, including safer ways for apps to integrate with advertising SDKs.”

Google’s privacy changes will not happen immediately. They are in about two years. According to ForbesGoogle is moving away from third-party cookies, but will be looking for ways to protect consumer privacy while still enabling ad targeting.

If you’re investing in internet stocks, you have every right to be concerned. Here are three actions to watch for as Alphabet rolls out its Google privacy changes:

  • Metaplatforms (NASDAQ:Facebook)
  • Break (NYSE:BREAK)
  • LendingTree (NASDAQ:TREE)

Google Privacy Stocks: meta-platforms (FB)

Source: Blue Planet Studio / Shutterstock.com

Meta Platforms, formerly known as Facebook, has been hit hard by Apple’s Application Tracking (ATT) privacy changes. The same could happen when Google rolls out its Privacy Sandbox.

Meta says it lost $10 billion in 2022 due to Apple’s privacy changes. “Apple has created two challenges for advertisers,” Chief Financial Officer Sheryl Sandberg said. “The first is that the targeting accuracy of our ads has decreased, which has increased the cost of results. The other is that measuring these outcomes has become more difficult.

Zak Doffman of Forbes writes that the real problem, however, is Meta itself.

“The problem isn’t Apple or Google, it’s Facebook’s business model. It tracks people and sells them targeted advertising. People are fed up and Facebook has nothing to rely on outside of its Metaverse, and will it work?” he wrote.

FB stock is down more than 23% so far in 2021.

Snap (SNAP)

An Apple iPhone showing the Snapchat app alongside other Snapchat logos

Source: Inkdrop / Shutterstock.com

Like Meta’s Facebook, Snap has also been affected by Apple’s ATT privacy changes. And it makes sense that it was affected by Google’s privacy changes.

What’s good for Snap, however, is that the social media company and parent company of Snapchat is doing better at managing its risks. It is therefore possible that SNAP stocks are less risky than Meta or other Internet companies that rely on targeted advertising.

Snap says it’s “making solid progress” in developing new privacy-preserving ad measurement tools.

CFO Derek Andersen said Snap built its advertising platform “with privacy by design.” He said the impact of Apple’s changes is “likely to be experienced differently” at Snap than at other companies.

Last quarter, Snap reported its first quarter net profit, with revenue of $1.3 billion and earnings of 22 cents per share.

Google Privacy Stocks: LendingTree (TREE)

Lending Tree (TREE) website under scrutiny

Source: II.studio / Shutterstock.com

OK, you might be wondering why LendingTree is on this list with two social media stocks. The reasoning is simple.

LendingTree operates an online lending marketplace for people seeking loans and other credit products. Customers can get mortgages, refinance, buy home equity loans, search for credit cards, small business loans, personal loans and more.

And here’s the kicker: LendingTree was the top Internet display ad buyer for all of 2020, spending $187 million. It’s more than Amazon (NASDAQ:AMZN), Google, Verizon Communications (NYSE:VZ), and Berkshire Hathaway (NYSE:BRK-ANYSE:BRK-B).

Any company that relies on digital advertising to reach a targeted audience will be one such action to watch as Google rolls out its own privacy tools.

LendingTree announced its quarterly results on February 25. It posted revenue of $258.30 million, narrowly beating analysts’ expectations of $258.25 million. It was also a 16% increase from a year ago. Earnings per share was a loss of 14 cents, which was better than the expected earnings loss of $1.16 per share.

“As we execute our strategy, we are well positioned to maintain our leadership in consumer credit,” said CEO Doug Lebda. “We are harnessing the incredible power of our brand, with its consistently high levels of aided awareness and combining it with our unparalleled depth of relationships with our partners, to be the ultimate resource for consumers who want to take control of their financial lives. “

TREE stock is down 9% so far in 2022, outperforming the Dow Jones Industrial Average and the S&P500.

At the date of publication, Patrick Sanders held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 he led the investment advice section at US News & World Report. Follow him on Twitter at@1patricksanders. As of this writing, he does not hold a position in any of the aforementioned titles..

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Seritage Growth still owes Berkshire Hathaway $1.44 billion https://hudsonberkshireexperience.com/seritage-growth-still-owes-berkshire-hathaway-1-44-billion/ Thu, 17 Feb 2022 13:10:00 +0000 https://hudsonberkshireexperience.com/seritage-growth-still-owes-berkshire-hathaway-1-44-billion/

Serage growth properties (NYSE: SRG) began life when it was spun off from Sears Holdings, a now-bankrupt retailer that owns iconic Sears and Kmart brands. It was a rough start that only got worse. And as the company grows stronger, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) still has a claim of $1.44 billion on the real estate investment trust (REIT).

What a start!

Sears and Kmart were struggling to resuscitate their businesses, fix their merchandise lineup, and attract customers. To free up cash for this effort, Sears Holdings created Seritage Growth Properties, which purchased a collection of stores from the retailer.

It’s not a strange start at all, and there are plenty of REITs that were formed in the same way. Four cornersfor example, was derived from Dard Restaurants not so long ago.

Image source: Getty Images.

That said, there is a notable discrepancy here. Darden is a reasonably strong restaurant operator, so even if Four Corners wants to diversify its business, there’s no particular rush for it to do so. In fact, Darden brands still make up around 60% of its portfolio. Olive Garden alone represents 45% of the portfolio, but it is a strong brand. Four Corners largely buys new assets to increase diversification.

Sears and Kmart, on the other hand, were in deep trouble and were closing stores when Seritage bought the assets. So, from the start, Seritage’s goal was to take over the big empty boxes from Sears and Kmart, refurbish them, and lease them to new tenants at (hopefully) higher rates.

Redevelopment is an expensive and time-consuming undertaking. While the structures were repaired, Seritage collected no rent even though the money for the redevelopment came out. At first it was kind of a race to get away from Sears and Kmart before Sears Holdings imploded. Seritage lost, with the retailer stumbling long before Seritage pulled away completely.

A hand

That said, in 2018 Warren Buffett and Berkshire Hathaway saw the value potential in Seritage’s portfolio and stepped in to help with a loan that could help the REIT bridge the gap between its redevelopment costs and improving its performance. income once he could rent out his updated retail space. It was a welcome help, given that a few months later Sears Holdings declared bankruptcy.

Things were moving forward until the coronavirus hit in 2020 and set the REIT back. Retail was one of the hardest hit real estate sectors at the start of the pandemic.

Things started to look up in 2021, and in early 2022 Seritage was able to repay $160 million on the term loan provided by Berkshire Hathaway. That sounds like a lot, but the term loan had a balance of $1.6 billion. So, he still has $1.44 billion left and little time to pay it back, given that it matures in July 2023.

But the two companies have agreed to an extension until July 2025. However, Seritage must repay the $800 million loan for it to take effect. So Seritage really has until July 2023 to pay another $640 million, which seems pretty reasonable. In fact, that’s a lot more reasonable than $1.44 billion.

For Berkshire Hathaway, which boasts a massive market capitalization of $707 billion, this is actually a very small deal, so it can afford to be patient. That’s a good thing, because without this loan, Seritage, with a market capitalization of $500 million, could have faced a life-or-death situation when Sears Holdings sought court protection.

SSR Chart

SSR data by YCharts

But there’s more good news here, since Seritage is completely out of its former parent. In the third quarter of 2021, it only had 23% of its rent locked in “signed not occupied” (SNO) contracts.

As these come into service and the costs associated with redevelopment of the assets decrease, Seritage’s business should begin to take a turn. It’s not just out of the woods, but as long as Berkshire Hathaway is willing to work with Seritage, there’s still potential for a turnaround here.

Not for the faint of heart

Seritage, from day one, has been a play. The road he has traveled since his beginnings has not been easy, with the bankruptcy of Sears Holdings and the pandemic representing two strong headwinds. Now, the next big issue to watch for investors in special situations seems to be the repayment of the $800 million loan. If the REIT manages to meet the conditions necessary to extend Berkshire Hathaway’s loan, the future looks much brighter.

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Reuben Gregg Brewer has no position in the stocks mentioned. The Motley Fool owns and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Seritage Growth Properties (Class A) and recommends the following options: long calls of $200 in January 2023 on Berkshire Hathaway (B shares), short longs of $200 in January 2023 on Berkshire Hathaway (B shares) and calls short $265 in January 2023 on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Your stress-free guide to buying home loans https://hudsonberkshireexperience.com/your-stress-free-guide-to-buying-home-loans/ Mon, 14 Feb 2022 21:25:54 +0000 https://hudsonberkshireexperience.com/your-stress-free-guide-to-buying-home-loans/

By Bob Walsmith Jr.
President 2022
Santa Barbara Association of Realtors

With this super-simple breakdown of loan types, you won’t be overwhelmed, you’ll find the right mortgage.

When it comes to buying a home, most people know what they prefer: a bungalow or a condo, a red-light district or a sleepy street.

Mortgages, too, come in many styles – and recognizing which type you should choose is just a bit more complex than, say, knowing that you prefer hardwood floors to carpet.

First, to choose the best loan for your situation, you need to know exactly what your situation is. Are you going to stay in this house for years? decades? Do you feel comfortable financially? Are you anxious about changing loan rates?

You’ll want to have an understanding of the different loans that are out there. There are a lot of options, and it can get a bit complicated – but you have this. Here we are.

Mortgages are fixed or adjustable, and one type is better for you

Let’s start with the most common type of mortgage, the workhorse of home loans: the fixed rate mortgage.

A fixed rate mortgage:

· Allows you to lock in an interest rate for 15 or 30 years (there are also 20-year loans). This means that your monthly payment will remain the same for the duration of the loan. (That said, your property taxes and insurance premiums will likely change over time.)

It is ideal when: You want long-term stability and plan to stay put.

Here’s what else you need to know about fixed rate mortgages:

· A 30-year fixed rate mortgage offers a lower monthly payment for the loan amount (for this reason, it is more popular than the other option, the 15-year one).

· A 15-year fixed rate mortgage usually offers a lower interest rate but a higher monthly payment because you pay off the loan amount faster.

Now let’s move on to variable rate, the other type of mortgage you’ll be looking at.

An adjustable rate mortgage (ARM):

Offers a lower interest rate than a fixed rate mortgage for an initial period — say, five or seven years — but the rate can fluctuate after the introductory period ends, depending on how interest rate. And that can complicate budgeting.

· Has caps that protect how high the rate can go.

It is ideal when: You plan to live in a house for a short time or expect your income to increase to compensate for potentially higher future rates.

Here’s what else you need to know about variable rate mortgages:

· Different lenders may offer the same initial interest rate, but different rate caps. It’s important to compare price caps when shopping for an MRA.

· Variable rate mortgages have a reputation for being complicated. As the Consumer Financial Protection Bureau advises, be sure to read the fine print.

A rule of thumb: when comparing adjustable rate loans, ask the potential lender to calculate the highest payment you might have to make. You don’t want any surprises.

Conventional loan or government loan? Your life answers the question

The fixed or variable rate mortgage you qualify for introduces a whole host of other categories, and they fall into two categories: conventional loans and government loans.

Conventional loans:

· Offer some of the most competitive interest rates, which means you’ll likely pay less interest over the life of the loan.

· Generally, you can get one faster than a government loan because there is less paperwork.

Who is eligible? Generally, you need at least a credit score of 620 or better and a 5% down payment to qualify for a conventional loan.

Here’s what else you need to know about conventional loans:

If you put less than 20% down on a conventional loan, you will have to pay private mortgage insurance, an additional monthly fee designed to mitigate the risk to the lender that a borrower might default on a loan. (The PMI ranges from about 0.3% to 1.15% of your home loan.) The result: The lender must cancel the PMI when you reach 22% of your home’s equity, and you can ask for it to be cancelled. once you reach 20% net worth.

· Most conventional loans also have a maximum debt-to-equity ratio of 43%, which compares the amount you owe (student loans, credit cards, auto loans and other debts) to your income, expressed as a percentage.

Fannie Mae and Freddie Mac set limits on how much money you can borrow for a conventional loan. A home loan that respects these limits is called a conforming loan:

· In most cities, the maximum conforming loan amount is $548,250.

· In high-cost areas, such as New York and San Francisco, the limit is $822,275.

· Limits are reviewed annually and are subject to change based on the average home price in each area.

A home loan that exceeds these limits is called a giant loan:

Jumbo loans generally require a higher down payment (up to 30% for some lenders) and a credit score of at least 720. Some borrowers can qualify by down payment of 20%, but their credit score must be higher .

They also tend to have stricter debt-to-income requirements, typically allowing a maximum DTI ratio of 38%.

There are also practical considerations to take into account before getting a jumbo loan, mainly: Are you comfortable with so much debt? The answer depends on your current financial situation and your long-term financial goals.

There are other types of loans. You should contact your trusted real estate agent for suggestions of lenders to talk to for help.

Bob Walsmith Jr. is a Southern California native and Realtor® at Berkshire Hathaway HomeServices California Properties in Santa Barbara. During his work with the Santa Barbara Association of Realtors, Bob has served on the CORE Committee, the Education Committee, served as Chair of the Budget and Finance Committee and the Multiple Listing Service Committee. He is also a member of the board of directors of the Alpha Resource Center in Santa Barbara. Bob lives in Goleta with his beautiful wife Julie. When he’s not working, Bob enjoys golfing, tasting fine wine, eating well and walking our beautiful coastline. Bob can be reached at 805.720.5362 and/or bob@bobwalsmithjr.com

]]> 3 TSX Dividend Stocks Hit 52-Week Highs https://hudsonberkshireexperience.com/3-tsx-dividend-stocks-hit-52-week-highs/ Fri, 11 Feb 2022 15:00:00 +0000 https://hudsonberkshireexperience.com/3-tsx-dividend-stocks-hit-52-week-highs/

Image source: Getty Images

Investors who have these three TSX dividend-paying stocks in their investment portfolios are likely to be happy campers. They recently hit 52-week highs! Should we buy them, keep them or sell them? Here are some insights from analysts to help you in your decision making.

Fairfax Financial Holdings

Fairfax Financial Holdings (TSX:FFH) is sometimes called a smaller version of Berkshire Hathaway. Like Berkshire, it is a holding company that has an insurance business. FFH also aims for a high rate of return on invested capital to create long-term shareholder value.

The beta of the stock roughly matches the beta of the market. Like most stocks in the market, it took a hit during the pandemic crash. However, it has roughly doubled since the bottom of the stock market crash in early 2020. Over the past year, its returns have also been comparable to those of Berkshire Hathaway. FFH stock is currently yielding around 1.9%.

FFH Total Return Level Chart

FFH and BRK.B Total Return Level Data by YCharts

John O’Connell’s comment on FFH in October 2021 was not kind, however:

“Prem Watsa engages in market timing, unlike Warren Buffett. Fairfax is a black box in what it owns. Tough business. Stuck in the mud for a while. If you want to look for good capital allocators in the [property and casualty insurance] company, look at BRK.B, which he owns.

John O’Connell, Chairman and CEO of Davis Rea

Royal Bank Stocks

Quality companies are meant to recover from market corrections. Stocks of major Canadian banks made a big comeback after the pandemic crash. As a leading bank with leading positions in a range of financial services in Canada, Royal Bank of Canada (TSX:RY)(NYSE:RY) is no exception.

It has appreciated about 120% since the bottom of the stock market crash and now has the largest market capitalization of the major Canadian banks. Its market capitalization is $208 billion.

Over the past 52 weeks, the stock dividend has returned almost 43%! Bank stocks have long been a staple in dividend portfolios. Currently, it offers a respectable yield of 3.3%.

RY Total Return Level Chart

RY Total Yield Level Data by YCharts

Here are David Driscoll’s comments on RBC stocks this month:

Rising interest rates will improve net interest margins (the spread between mortgages issued and deposits received). Dividend increases have taken place across the industry. Well-diversified company with operations in the United States and internationally. Avoid buying too many bank stocks as this exposes investors to sector risk.

David Driscoll, President and CEO of Liberty International

Brookfield Infrastructure

While Royal Bank shares may be staple banking stocks for many, Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) could be a core utility holding company. Since BIP was separated from Brookfield Asset Managementit increased its cash distribution every year for more than a decade.

Based on the way he runs his business, investors can expect more dividend increases for many decades to come. Its cash flow is sustainable – around 90% is regulated and contractual and 70% is indexed to inflation. Currently, it gives about 3.5%.

Here is a comment on Varun Anand’s utility as of November 2021:

“A diversified large-cap infrastructure play, led by one of the top asset managers [Brookfield Asset Management]. Excellent construction work on a global scale. Better ways to play infrastructure by owning individual names versus a conglomerate. Good candidate if you want to sleep at night and collect the dividend.

Varun Anand, Vice President and Senior Portfolio Manager at Starlight Capital

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After Norwalk home sales stagnate, new listings remain scarce https://hudsonberkshireexperience.com/after-norwalk-home-sales-stagnate-new-listings-remain-scarce/ Thu, 03 Feb 2022 12:55:03 +0000 https://hudsonberkshireexperience.com/after-norwalk-home-sales-stagnate-new-listings-remain-scarce/ The calls started coming in Tuesday afternoon almost from the time William Pitt Sotheby’s International Realty listed a property in the Sasqua Hills neighborhood of Norwalk near the water, with owners asking $1.85million for the home 6,000 square feet.

“They recognized it was the perfect time to sell,” said listing agent Mary Phelps with her William Pitt Sotheby’s colleague Gabrielle Gearhart. “If you have somewhere to go, it’s a good time because there are so many buyers waiting.”

But in Norwalk and surrounding towns, listings remain sparse in early February, raising questions about where the housing market will go in 2022.

After a historic 2020 when single-family home sales skyrocketed during the initial phase of the COVID pandemic, only New Canaan continued that momentum last year with a 12% increase in sales to just over 870 transactions. , according to data compiled by Berkshire Hathaway HomeServices New England Properties.

Norwalk saw five fewer single-family homes sell last year for a total of just over 980, but condo sales exploded with a 25% increase to around 560 units.

Brokers say the flattening of home sales was largely the result of buyers swooping in on top properties as soon as they hit real estate websites, leaving those who outbid them to wait for comparable properties to arrive on the market.

Agents in other parts of Connecticut say they are seeing more and more people searching for available properties that would have typically limited their search to the southwestern part of the state. They are priced, but with more people working remotely, they have more leeway in choosing where to live.

“High-end buyers go anywhere,” said Nancy Newman, an agent for Keller Williams Realty in Middletown who is familiar with the Connecticut River and coastal markets east of By Mike PignataroNew Haven. “They’re looking all over the state.”

Covering Norwalk and its five neighboring towns in an arc from Darien to Westport, single-family home sales fell 3% in 2021 to just under 3,900 transactions, according to data compiled by Berkshire Hathaway HomeServices New England Properties.

The shortage of available homes continues to put pressure on prices, following a year in 2021 where Norwalk sellers fetched an average of 1.2% more than their asking prices. For a home listed at $600,000 near the city’s median price, that would add about $7,000 more to the price.

Weston ranked among the cities with the largest increase in median price, up 36% from the 2020 median of $1.1 million.

During the second half of 2021, the majority of homes in Norwalk sold for between $400,000 and $750,000, but several fetched $4 million or more. Norwalk’s best sale of the year came in November, when a Wilson Point estate, formerly owned by real estate developer Carl Kuehner III, was purchased for just over $7 million.

A handful of properties in Westport, Darien and New Canaan also sold for more than $7 million last year.

Regardless of property values, homebuyers face the prospect of having to pay more on their mortgages, with the Federal Reserve signaling that it plans a series of interest rate hikes this year in a bid to contain the ‘inflation. This might prompt some to search more aggressively in the early months of the year to get a better rate.

“It will be interesting to see how this all pans out,” Phelps said.

Alex.Soule@scni.com; 203-842-2545; @casoulman

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Year-end outlook in real estate: a “tick to torrent” of foreclosures expected in 2022 https://hudsonberkshireexperience.com/year-end-outlook-in-real-estate-a-tick-to-torrent-of-foreclosures-expected-in-2022/ Fri, 28 Jan 2022 21:08:29 +0000 https://hudsonberkshireexperience.com/year-end-outlook-in-real-estate-a-tick-to-torrent-of-foreclosures-expected-in-2022/

Despite a record year of feverish market activity, the real estate market could get a dose of reality in 2022. A post-pandemic return to normalcy will likely be highlighted with its share of ups and downs as price gains slow , mortgage rates rise and the impact of government intervention diminishes.

According to recent reports from ATTOM Solutions, the market hasn’t had to wait long to see foreclosure activity resume since the moratorium was lifted in July. According to the report, notices of default, scheduled auctions or bank foreclosures soared 34% in the third quarter of this year.

Experts say the rise will likely continue well into the new year after nearly a year and a half of foreclosure moratorium.

“Foreclosure starts are very likely to increase over the next six months to a year, with the increase ranging from a tick to a torrent,” says Todd Teta, chief product officer at ATTOM Solutions.

Lender influence

The jury is still out on the scope of the next foreclosure spike, but much of that will depend on how lenders choose to deal with troubled borrowers who are behind on their payments.

In previous interviews we conducted, financial institutions told RISMedia that they would try to work with borrowers after the moratorium ends, and that still appears to be the case, according to a recent statement from Wells Fargo.

“Wells Fargo is here to help homeowners when their payment suspensions come to an end, and we’re reaching out to engage with our customers through email, letters and phone,” a Wells Fargo spokesperson said, adding that the bank has stopped everything. foreclosure-related activities on properties occupied until the end of 2021, except in special cases.

“In most cases, customers who were current on their monthly mortgage payments or home equity when the suspension of payments began and who are ready to resume those payments may be able to defer missed payments. at the end of the term of the existing loan,” the spokesperson said. keep on going. “Customers will need to call us to discuss the potential movement of payments to the end of the term or to review other program options to make up for missed payments.”

Additional safeguards have also been put in place by the Consumer Financial Protection Bureau (CFPB) to help borrowers transition to making payments again. The new rules essentially guide lenders on how they should approach and work with borrowers to avoid foreclosures.

The CFPB rules came into effect on August 31 and will last until the end of 2021.

According to Mary Ellen Graziano, senior vice president of William Raveis Mortgage, lenders taking action against borrowers may also depend on homeowners being late.

“I think the first properties they’re going to look at are the abandoned ones,” she says. “Others will likely work with borrowers and see if they can come up with a payment plan and maybe even adjust loan terms.”

Despite the measures taken to prevent foreclosures, an increase in foreclosure activity will inevitably result from the current circumstances.

According to recent reports from Black Knight Inc., forbearance volumes continue to decline, with the number of active plans related to COVID-19 falling below 1.6 million in September.

While mortgage delinquency rates showed signs of improvement in August, Black Knight also noted that serious delinquencies – borrowers more than 90 days in arrears – are still around triple their pre-Central levels. pandemic.

However, according to Black Knight, a silver lining is that delinquencies are on track to return to pre-COVID levels by early 2022.

Memory of 2008

A sustained spike in foreclosures is a heartbreaking prognosis, especially for history buffs who remember the last recession.

According to Teta, foreclosures will likely show up first in poorer areas, where homeowners are more likely to be in financial difficulty and less likely to have the money to make deals with lenders.

“This will likely lead to some increase in zombie properties, which can generate blight and detract from the attractiveness of neighborhoods where they pop up,” he says, noting that these types of foreclosures can serve as a leading indicator of strength. of the housing market.

“Few measures of force have stood out more in recent years than zombie properties, or lack thereof,” Teta continues.

Zombie properties account for one in 13,100 homes in the United States, according to recent reports from ATTOM Solutions. This is a huge improvement from 10,300 just two years ago, Teta says, adding that the stock was higher after the Great Recession.

“That’s a far cry from what happened when home values ​​plummeted after the last recession and many homeowners gave up on mortgages they couldn’t afford or didn’t want to pay anymore,” Teta says.

According to Danielle Hale, chief economist at realtor.com®, the impending wave of foreclosures is not shaping up to be the deathblow to the industry that economists predicted in 2020.

“When people hear that, they rightly think back to the last time we had a bunch of foreclosures, it impacted the housing market,” Hale says. “I don’t think we’re going to see anything like that.”

Eric Spotswood, regional mortgage manager at Prosperity Home Mortgage, echoed similar sentiments, noting the differences between the two eras.

Looking back to 2008, Spotswood notes that a mix of excessive construction and a lack of equity contributed to the market slowdown as borrowers found themselves upside down in their mortgages.

While the COVID-19 pandemic caused a recession in 2020 and a temporary lull in the market, circumstances are essentially reversed in today’s market, according to Spotswood.

“Even if someone has to do a fire sale to get out of their house, people have more equity in homes than at any point in history, and they could do it,” said Spotwood. “The flexibility of borrowers who are in homes that may be in a position where they can’t afford it puts them at a point of strength.”

Brokers weigh

Brokers agree that a rise in foreclosed properties on the market, which is always in desperate need of new inventory nationwide, could provide a much-needed injection of affordable housing.

Rei Mesa, CEO of Berkshire Hathaway HomeServices Florida Properties, doesn’t find the forecast alarming for her market, which still needs an injection of inventory.

“I don’t see that as a problem, and in fact I would see it as an opportunity for buyers to be able to buy properties because there’s a lot of competition for very few listings,” Mesa says.

Based on third quarter data reported by ATTOM, Florida was among the list of states with the highest rate of foreclosures, with more than one in 2,000 properties in the foreclosure process.

The state also recorded a high rate of foreclosures completed during the same period.

With the volume of demand, Mesa expects any new listings to be absorbed quickly.

According to Candace Adams, CEO and President of Berkshire Hathaway HomeServices New England, Westchester & New York Properties, the same is true for Northeast markets.

“You have nine or 10 listings per property, and our current inventory is about 23% lower than last year,” Adams says. “We know that in the state of Connecticut we have less than two months’ supply, so hopefully we’ll have seizures because they’ll be consumed in about two seconds because the buyers are still there.”

Yuri Blanco, broker/owner of RE/MAX Executives, echoed similar sentiments for the Boise, Idaho market. According to Blanco, the market continues to see an inbound migration of buyers fueling demand.

“They’re still interested in buying, but just haven’t been able to lock anything in yet,” Blanco says. “I think once these hit the market there will be buyers to take advantage of these prices, which are usually at a fairly fair market value.”

However, the opportunity does not lie solely with buyers. Mesa also points out that agents are likely to improve their business prospects in the months and years to come if they are prepared.

Part of this preparation includes honing training and certifications that stand out from lenders and banks.

“Once the banks repossess the properties, they will use the real estate agents that lenders are used to working with or who have already been approved to handle the listings,” Mesa says.

He notes that courses to improve understanding of how to work with the bank, borrower and potential buyer could be a boon for agents looking to capitalize on an influx of foreclosed properties.

Demand for continuing education on short selling and foreclosures is already showing signs of increasing, according to Tina Lapp, head of local brands for Colibri Group and former president of Colibri’s Hondros College.

“We regularly quiz our students on topics that interest them, and we see that those topics are starting to become more in demand than they have been in recent years,” Lapp says, adding that Colibri offers courses on a mix of “hot topics impacting today’s real estate market.

“Our course demand follows the market, which is great to see that real estate professionals are highly motivated to learn the skills that support their buyers and sellers,” continues Lapp. “We are starting to see a slight increase in demand for topics related to short sales and foreclosures, but certainly not up to what we experienced in 2007-2009.”

Contact Bill Cullin to be prepared for market changes!

Bill Cullin
Your Delaware Beach Real Estate Source
Websites:
www.DelawareBeachRE.com
www.TheHenlopen.com
Cell: 302-841-7147
Office: 302-227-2541
Toll free: 1-800-GO-BEACH, ext. 117
Fax: 302-227-8165
Long and Foster | Christies International Real Estate
37156 Rehoboth Avenue Ext, Suite 5
Rehoboth Beach, Delaware 19971

• Best Long & Foster Rehoboth Office Individual Agent for 13 consecutive years
• Long & Foster’s top-selling individual agent in the entire state of Delaware for 2 consecutive years
• Long & Foster’s top-selling individual agent in the coastal region for 3 consecutive years
• Five-star award-winning sales agent (based on customer surveys) for 7 consecutive years
• Member of the Long & Foster Gold Team. Founders Club Level, with a sales volume of $10-20 million per year. For 6 consecutive years.
• Zillow.com and Trulia.com 5 Star Professional 10 consecutive years with the Best of Zillow designation were awarded last year. Click here to view customer reviews online
• Best Sales Agent at The Henlopen Condominiums over the past 13 years

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Only 31% of black residents own a home; new workshop, with banks joining, hoping to change that | Local News https://hudsonberkshireexperience.com/only-31-of-black-residents-own-a-home-new-workshop-with-banks-joining-hoping-to-change-that-local-news/ Thu, 27 Jan 2022 16:05:03 +0000 https://hudsonberkshireexperience.com/only-31-of-black-residents-own-a-home-new-workshop-with-banks-joining-hoping-to-change-that-local-news/

WATERLOO — Three banks and a credit union are teaming up with a local organization for a five-week workshop designed to close the major gap between white and black residents in homeownership.

A five-week in-home workshop will be presented by 24/7 BLAC beginning Feb. 5 from 10 a.m. to noon at UNI-CUE, 800 Sycamore St., Waterloo.

Topics covered will include preparing to buy a home, managing money, getting a mortgage, and understanding credit. The workshop costs $25 per person, and those who complete it will be entitled to $2,500 from BLAC 24/7 and a savings of $2,000 from Veridian Credit Union to pay for a down payment, closing costs or expenses. other mortgage-related needs.

“Banks and credit unions sometimes aren’t the most comfortable place for people to be,” said Robert Smith, Executive Director of UNI-CUE and Vice President of 24/7 BLAC. “What we’re trying to do is get people familiar with how these lending institutions work and then partner up.”

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Black Hawk County is among several places in Iowa where it is financially more advantageous to buy a home than to rent, with residents only needing to earn 23.5% of the average local wage to buy a home 3-bedroom apartment at median price, according to Attom Data. 2022 Rent Affordability Report. Attom noted that the median selling price for such a home in the county in 2021 was $162,000.

Despite this, Black homeownership was only 31.6% in the Waterloo/Cedar Falls metro area in 2021, which is staggeringly lower than the 72.7% of white residents who owned a home.

This is due to a myriad of factors – long-standing red lines and lending biases among them – that ultimately result in keeping black residents from achieving the generation of wealth that home ownership historically has. allowed, said Gwenne Berry, director of diversity at the University of Northern Iowa and a 24/7 BLAC board member.

“It’s not a one to two percent gap — it’s significant,” Berry said. “It tells us that it’s not just people who don’t want to (own a home). There have never been people who don’t want to. These are people who can’t or have been turned down, and that’s what we mean when we talk about systemic racism. »

A recent study by real estate firm Zillow found that nearly 20% of black mortgage applications nationwide were turned down in 2020, nearly double the application rate for whites. The study found that black mortgage applicants were turned down 84% more than white applicants, up from 74% in 2019.


Smith has written guest opinions in The Courier over the years regarding wealth creation and money myths in the black community that he believes have contributed to the gap. But he noted that the workshop needs to address more than just individuals’ financial literacy in order to move the needle on the racial gap.

“If members want to do all they can to own their homes, institutions in this community have a responsibility to do better than what has been done in the past,” Smith said.

It’s something financial institutions seem more eager to help of late: Last year, GreenState Credit Union set a goal of lending $50 million a year for the next 10 years to black borrowers, which would represent a 67% increase over what she lent to black members. in 2020. Instead, it lent more than $70 million in 2021, more than 10% of which went to 54 Black Hawk County residents getting new mortgages or bridging loans.



GreenState lends over $7 million to black homeowners in Black Hawk County

The banks involved in the latest 24/7 BLAC workshop are Community Bank and Trust, US Bank and Wells Fargo, as well as Veridian Credit Union. Berkshire Hathaway HomeServices is also a partner in this effort.

“I think people want to help us get it right – I really do,” Smith said. “We have to do much better than what has been done in the past.”

Those with questions can contact LeKeisha Veasley, community inclusion strategist at Veridian, at (319) 287-8455 or LeKeishaLV@veridiancu.org.



During a virtual banquet, Joy Briscoe urges the community to continue their efforts to achieve the dream of MLK Jr.

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