Chris Whalen & Joe Quinlan on Housing Affordability and 2026 Investment Outlook

Housing Affordability Conundrum

• 🏠 Home prices have surged by 50% since COVID, creating an affordability crisis.
• 💡 A proposed solution involves letting home prices decrease, but this is opposed by those who have recently purchased homes with mortgages.
• ⚠️ President Trump has publicly stated opposition to policies that would lower home prices, indicating a significant challenge in addressing affordability.

Investment Outlook for 2026

• 🇺🇸 US equities remain a core portfolio holding, despite an "off year" in the economy.
• 🌍 There is a positive outlook for overseas investments, including China, banks in Europe, defense plays in Europe, South Korea, and Japan.
• 📈 The breadth of investment opportunities has expanded beyond the "Mag 7" and US equities, which is seen as a positive development.

Corporate Earnings and Market Trends

• 📊 Earnings season is showing strong year-on-year growth, with a reported 14.4% increase.
• ❓ A key question remains about the sustainability of this double-digit earnings growth.
• 🌐 The discussion highlights the importance of looking beyond US markets and focusing on a broader range of global opportunities.