May 11th – Running of the Bulls

What I’m Reading

Glass Half Full: The results DLA Piper’s latest State of the Market Survey revealed no shortage of bullish sentiment about commercial real estate with 74% expressing optimism about the market in 2021 versus just 24% a year prior.  Respondents were especially bullish on markets like Austin and Nashville but still bearish about hotels, retail and office.  DLA Piper

Rise of the Machines: A shortage of restaurant workers is starting to drive demand for higher levels of automation.  Crunchbase

Balancing Act: Rising material costs and supply shortages along with expected increases in mortgage rates will likely keep a growing number of potentially prospective home buyers in rentals. Globe Street

Slimmed Down: Homebuilders are increasingly going with a land-light model, optioning a higher number of lots rather than closing all cash before they are ready to start construction.  Builder Online

Swing and a Miss: The April jobs report was a massive miss with job creation coming in way below forecast.  A lot of the blame is going to enhanced UI which is giving people less incentive to work and creating substantial friction now that the economy is reopening.  That being said, this tends to be a very noisy data set and large outlier reports tend to be revised down the road.  Bonddad Blog One easy solution for the time being would be to convert the enhanced UI payments to signing bonuses for those who take a job rather than taking them away.  

Chart of the Day

Hmmmmm.

Source: Wall Street Journal

WTF

That’s Shitty: An intoxicated neo Nazi sporting tattoos on his forehead was arrested for swinging his colostomy bag at police outside of an establishment called Kid Rock’s Big Ass Honky Tonk & Rock ‘N’ Roll Steakhouse in Nashville, spraying them with feces.  The Smoking Gun

Here Kitty, Kitty: A Bengal Tiger was found roaming around a residential neighborhood because Texas.  NBC News

Basis Points – A candid look at the economy, real estate, and other things sometimes related.

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