Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MADISON, Wis. — As banks continue to make adjustments to capital and lending efforts, patience is probably the most pressing piece of advice now for anxious investors.“Once banks gain a true handle on their capital and begin lending again, the price of mortgages and refinancings should be at levels that are more affordable, thus driving more volume while potentially stopping the housing skid,” said Scott Powell, managing director of common stocks and managed accounts at MEMBERS Capital Advisors Inc. in a Dec. 1 MarketLine alert. “But investors are going to have to be patient in letting this phenomenon play out.”As it was confirmed last week that the country is officially in a recession, credit markets are still substantially frozen and house prices are still falling.“The cost of credit is high, if you can get it at all, while the velocity of money is way down, causing the economy, asset prices and commodity prices to contract,” Powell said.Meanwhile, yields on longer dated U.S. Treasuries continue to fall dramatically as investors move into government paper, Powell said. It would not be surprising to see the Nov. 20 market lows retested, he added, saying “assuming that does happen, and the low would hold, the formation of a triple bottom in the equity market would mark a significant, and potentially promising, milestone on the road to future market stability and recovery.”–[email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.