To quote Bob Dylan and Rick Danko, “This Wheel’s On Fire!”
The Atlanta Fed’s GDPNow Q1 GDP forecast rose to 8.321% QoQ as of April 16. Of course, The Fed is printing like crazy.
Retail sales (pent-up demand and Biden stimulus checks) helped contibute to a growing GDP, as did a surge in housing starts.
But with rapidly rising lumber prices, housing starts will begin to slow.
As Phil Hall from Benzinga pointed out, Wells Fargo is bullish on DR Horton and KB Homes. Of course, massive money printing is another reason.
Will rising prices take the starch out of the housing market? A little bit, but with such low levels of available housing, new housing stock will still be in demand.
I like The Byrds’ version of “This Wheel’s On Fire” a bit more.
On a side note, Bitcoin took a bit of a drubbing over the weekend along with Ethereum.
