Three Things (7/21)

Thursday, Jul 21st 2022

Commentary

University endowments brace for tough year, investor pessimism grows, U.S. home sales drop to 2-year low

“Some people are old at 18 and some are young at 90. Time is a concept that humans created.” – Yoko Ono


1) University endowments brace for tough year: Universities are set to report steep losses for their endowments as both private and public markets nose-dived. In recent years, schools have charged into private investments to juice returns, generating the strongest returns since the 1980s. 42% of Princeton's $37.7 billion endowment is allocated to private equity. 

Titan's Takeaway: It's an abrupt reversal in fortune for universities that saw some of their best returns just last year. As the gilded age of private investment careens off the road, even your alma-mater isn't exempt from the recent market turmoil. 

2) Investors cut allocations to lowest levels since 2008: A Bank of America survey of 259 investment managers with combined assets of $722 billion revealed that investors shrank equity allocations to the lowest contribution level since October 2008. In addition, 79% of respondents said they expected corporate profits to shrink, a higher percentage than in 2008 and at the onset of the COVID pandemic.  

Titan's Takeaway: The survey results show the growing sense of pessimism that prominent investors feel in the market's trajectory. While short-term rallies are possible until there is a shift in Fed policy, the road to recovery is likely to be a long one.

3) U.S. home sales drop to two-year low: U.S. existing home sales declined for the 5th straight month and the lowest in two years in June as a swell in borrowing costs tamps down demand. The news follows data that mortgage applications are at the lowest since 2000. Mortgage rates will likely continue to rise as the Fed continues its aggressive posture of rate hikes to combat inflation. 

Titan's Takeaway: One unintended consequence of a slowing housing market: sky-high rents. With more potential home-buyers backing out of deals, the rental market is flooded with new applicants, driving rental prices to record highs. 


Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

IRA vs. Brokerage Account: What Are The Main Differences?


How to Diversify Your Investment Portfolio


What Is a Stock Exchange & How Does It Work?


The Top 6 Best Retirement Planning Tools & Income Calculators

Let's Get Started

Ready to become a client?

Create an account with us in two minutes.

Or scan to get the app

We're building the best investment platform, ever

Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice. Check the background of these firms on FINRA's BrokerCheck.

© Copyright 2022 Titan Global Capital Management USA LLC. All Rights Reserved.