This Company Has “Short Me” Written All Over It

Dear Rundown Reader,

Wednesday’s question, how do you fix healthcare? You waved the “magic wand” and fixed it.

Your letters:

“That’s easy. Go back to the way it was when I was born, 1961. It cost my mom $450 to give birth to me in 1961, same price as a new color TV! There were few regulations then and few people had insurance. My mom had zero insurance. Gave birth, paid the bill, went home. Great system. No one complained about the costs of healthcare in 1961.”

“We fix healthcare by making it about health instead of treating illness. More money needs to be put forward to preventative services.”

“Get insurance companies out from healthcare and get back doctor to patient relationships. Also limit liabilities.”

“Stop demonizing alternative practitioners – herbalists, naturopaths, etc.”

“Educate the American public. Many of my wife’s patients want to take a pill and forget about their health problems. Unfortunately it doesn’t work that way. Rarely if ever will a pill cure one’s poor health – but lifestyle changes will. Sadly far too many Americans refuse to take responsibility for their health through better lifestyle choices.”

“Of course the subject is enormous, complex and nuanced but I’d suggest first and foremost, let individuals make their own healthcare decisions. Get government the hell out.”

This is just a sample of your responses. We’re still reading them, in fact.

Thank you for all your letters. Every single letter we received on this topic was an honest attempt to think through the problem and give a real solution.

Now the question is, what do we do with all these ideas? Petition your local Congressperson?

Your Rundown for Friday, March 16, 2018…

Zillow’s Not Doing The Housing Market Any Favors

A number of warning signs show the U.S. housing market may be in trouble again.

Well, maybe not “trouble.” But may be about to get less hot, let’s say that.

Rising mortgage rates are cited as a major reason for the growing concern.

A CNNMoney report notes, “Economists say it could put the financial system at ‘even greater risk’ when the next recession strikes or too many borrowers fall behind on their mortgage payments.”

According to the same CNNMoney report, “A growing segment of the mortgage market is being financed by so-called non-bank lenders — financial institutions that offer loans to consumers but don’t provide saving or checking accounts.”

This has allowed some folks to secure mortgages they really can’t afford or would be offered by traditional lenders.

In 2008 the term NINJA loan was tossed around loosely, almost comically, to represent the mortgage situation leading up the crash.

NINJA standing for: No income, no job, no assets… no problem.

Here’s $350,000 for a house, good luck in your job search, and by the way your first mortgage payment is due.

Of course not long after NINJA lending hit its peak, the bubble burst kicking off The Great Recession.

That was then, this is now.

Rate hikes, the story goes, are expected to decrease the overall demand for housing.

Less demand means less people looking.

Less people looking means the listing aggregator websites get less traffic.

And make even less money than they do now, which isn’t much.

Oddly enough, while most housing related indexes, stocks, and ETFs have been on the decline in wake of current fears, one company is standing out, and soaring right now.

Zillow (NASDAQ: Z), the popular online home buying marketplace, has risen almost 40% on the year.

Check out the chart for Zillow’s past six months:

Even though Zillow’s stock has stood out from the housing trend, maybe the fact that Zillow doesn’t make money will become a popular thought as housing gets even tougher.

If you’re holding shares of Zillow currently, congrats. You’re in the money.

But be prepared to cut loose and rotate your money elsewhere.

The housing market is looking like it could get dicey. Well, maybe not dicey. But tougher, let’s say that.

Are we hedging here? You bet. Also trying to not sound alarmist? You bet.

But Zillow’s a dangerous buy any way you cut it.

Now, turning to the markets this morning…

Market Rundown for Fri., March 16

S&P 500 futures are flat this morning at 2,752.

Oil’s at $61.34.

Gold’s up $3.00 at $1,320.

Bitcoin continues to slide lower, going for $8,189 this morning according to CoinDesk.

The “big news” we said we had for you today, well, it’ll have to wait.

We’re still putting the finishing touches on the new benefit we have for you. All the details next week. Thanks for your patience!

We’ll talk again on Monday.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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