Editor's Note: Below is a brief excerpt from today's Early Look written by U.S. Macro analyst Christian Drake. Click here to learn more about the Early Look.
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The latest input cost crescendo is occurring with rates again backing up. To be sure, underlying Housing demand remains solid, some runway exists from an affordability perspective (i.e. home prices/rates can rise further before becoming an acute constrain on affordability) and the longer-term opportunity in housing remains favorable but rising rates and unbridled input cost inflation are not a bullish factor cocktail for related equity exposures. |
