XLRE Jan 2025 50.000 call
- Yahoo Finance Video
Utilities sector is where the 'AI craze' gets 'out of hand'
On Monday's edition of Good Buy or Goodbye, Interactive Brokers chief strategist Steve Sosnick breaks down two interest rate-sensitive sectors in a higher-for-longer economic backdrop. Sosnick sees the Real Estate Select Sector (XLRE) ETF as a "good buy," explaining that it is "interest rate-sensitive on the way in and the way out. They borrow a lot of money, but they pay a high dividend typically." The ETF covers a diverse set of companies, from offices to apartments to data centers, he says, noting, "it's OK to be in a diverse sector as long as you have winners to help out the losers." He points to the boom of residential real estate as balancing out the struggling commercial side of real estate. Conversely, Sosnick believes utilities (XLU) are "a manifestation of the AI craze that's gotten a little bit out of hand." He explains that while the sector's rate structure is pretty well fixed, the infrastructure is a much greater undertaking, with high costs and a longer time to build. "So if you're piling into utilities as an AI play, it's going to take you years for that to pay off," he explains. For those who already have utilities, he encourages investors to hold, but not buy more. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
- Yahoo Finance Video
Why now is the time to buy a house: William Raveis VP
Mortgage rates are showing signs of easing, falling below the 7% for the first time in a month. Melissa Cohn, William Raveis Mortgage regional vice president, joins Wealth! to discuss her outlook on the housing market. Cohn notes that "more buyers will come into the marketplace" as rates continue their downward trajectory. She advises individuals looking to purchase a home to buy now. As the number of homebuyers increases and rates continue to drop, Cohn says, "prices are likely to go up." Cohn also highlights home sellers, noting the importance of finding "that happy medium." For those looking to sell their properties, she says they must remember that they will ultimately be in the market to buy as well. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith
- Yahoo Finance Video
Silicon Valley luxury homes sales soar amid AI boom
While the broader housing sector continues to face challenges, luxury homes in Silicon Valley are flying off the market. Analysts attribute this surge in high-end real estate activity to the ongoing artificial intelligence boom. Yahoo Finance's Rebecca Chen breaks down AI's impact on the region's successful real estate trends. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith
