Here’s what investors should do as the housing market faces tough times

With interest rates on the rise, attention has increasingly focused on the housing market, which has been the victim of a slowdown since its post-pandemic peak.

New signs of difficulty are coming from Compass COMP,
whose shares are plummeting in the pre-market after real estate brokerage and the tech provider cut its annual revenue guide and revealed cost-cutting plans, citing a slowing market.

Here is a chart showing the tough race for shareholders since Compass’s debut in the spring of 2021 by blogger Wolf Street, who warns that the end is near for the company based on how quickly it has burned money:

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   And a new report from Redfin RDFN<span/>
   revealed that 63,000 home purchase contracts failed in July - 16.1% of homes that were under contract in the month - marking the highest percentage ever recorded, aside from March and April 2020. </p> <p>What should suspicious real estate investors do?  Our <strong>call of the day</strong> from Nuveen's chief investment officer, Saira Malik predicts "neither a bubble nor a minimum" for the market, but says defense is the smartest move right now when it comes to this market.</p> <p>"Deteriorating home builder and consumer confidence, higher mortgage rates, historically low affordability, declining housing beginnings and building permits, and record stocks of existing homes for sale, among other factors," will have implications for the real estate sector and the economy in general, Malik wrote in a comment Monday. </p> <p>"But in our view they are not proof of a housing bubble that should burst" with demand still healthy, he said. </p> <p>However, a lot of pain remains for renters as prices continue to rise, and with higher house prices and rental costs, Americans will cut spending on goods and services, eventually hitting corporate earnings and keeping markets volatile. Malik said.</p> <p>Real estate investors must remain “well positioned, especially if their sectoral and regional exposures are aligned with prevailing demographic and supply / demand trends.  Builders are still catching up from the global financial crisis, with the onset of housing still above the trend.  This strengthens the long-term price stability in the sector and supports our constructive outlook, "she added.</p> <p>Additionally, he recommends staying defensive through dividend-growing stocks that are often higher quality and derive more total yield from dividends than from price appreciation. </p> <p>On the data front, the start of US real estate activity fell to its lowest level in July since the beginning of 2021, after another decline in builder confidence on Monday.  An update on existing home sales is expected later in the week.</p> <p><strong>Laws: </strong>This Stock Market Milestone Indicates The S&P 500 Could Be Up To 16% Up A Year From Now</p><h6>Markets</h6>
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   <p>DJIA shares<span/>

    SPX<span/>

    COMP<span/>
   they are flat to decline at the start of trading, with BX bond yields: TMUBMUSD02Y<span/>

    BX: TMUBMUSD10Y<span/>
   rising and CL oil prices<span/>

    BRN00<span/>
   rebounding slightly after weakest day in over a month driven by weak China data.  Bitcoin BTCUSD<span/>
   is trading just under $ 24,000.</p><h6>The buzz</h6> <p>Following a profit warning last month, retail giant Walmart WMT<span/>
   it has exceeded earnings expectations and equities are up.  Home Depot HD<span/>
   it also posted an increase in profits with record sales, but the stock is down. </p> <p>Merck MRK<span/>
   and Orna Therapeutics will collaborate on an agreement to discover and develop programs that include vaccines, allowing them up to $ 3.5 billion in interim payments. </p> <p>Signs of further Big Tech fallout from a slowdown in the global economy, with Apple AAPL<span/>
   reportedly firing around 100 contract workers.  Additionally, Apple wants workers to return to the office three days a week. </p> <p><strong>In a graph:</strong> Life in America is returning to "normal" except when it comes to the office</p> <p>Warren Buffett's Berkshire Hathaway BRK<span/>

    BRK<span/>
   increased stake in Amazon AMZN<span>,</span>
   selling GM GM<span/>
   in the last quarter, according to documents that arrived Monday from hedges and investment funds.  Elsewhere, Paulson & Co., the hedge fund managed by John Paulson, has exited Exxon Mobil XOM<span/>
   and SPDR Gold ETF GLD<span>.</span>
   George Soros' investment fund bought Tesla TSLA<span/>
   and Ford F<span/>
   bets, adding to Lucid LCID<span/>
   and NIO NIO<span>,</span>
   and Ray Dalio's Bridgewater picked up Rivian RIVN<span/>
   and Amazon.</p> <p>On the data front, building permits and housing commencement will be issued at 8:30 in the east, followed by industrial production and capacity utilization.  </p> <p>President Joe Biden will sign the Democrats' climate change and health care bill on Tuesday. </p><h6>The best of the web</h6> <p>This nonprofit has written off $ 6.7 billion in American health care debts</p> <p>In Mexico, predatory lending apps thrive in the Google Play Store. </p> <p>The family investment firm of a Spanish fashion billionaire is investing in renewable energy.</p><h6>The graph</h6> <p>Bank of America has released its monthly survey of global fund managers.  Among the findings, the net percentage of investors expecting growth to exceed value in the next 12 months turned positive for the first time since August 2020:
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      </span>
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   <strong>Laws:</strong> Fund managers are no longer "apocalyptically bearish," says BofA after the latest poll</p><h6>The best tickers</h6> <p>These were the most searched tickers on MarketWatch at 6:00 am Eastern time:</p><table> <tr class="data odd"> <td align="" valign="top" colspan="1">



  Ticker


  </td> <td align="" valign="top" colspan="1">



  Security name


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    BBY<span/>
  </td> <td align="" valign="top" colspan="1">



  Bath to bed and beyond


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    TSLA<span/>
  </td> <td align="" valign="top" colspan="1">



  Tesla


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    AMC<span/>
  </td> <td align="" valign="top" colspan="1">



  AMC entertainment


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    GME<span/>
  </td> <td align="" valign="top" colspan="1">



  GameStop


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    BEST<span/>
  </td> <td align="" valign="top" colspan="1">



  Magic Empire Global


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    AAPL<span/>
  </td> <td align="" valign="top" colspan="1">



  Apple


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    NIO<span/>
  </td> <td align="" valign="top" colspan="1">



  NIO


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    AMZN<span/>
  </td> <td align="" valign="top" colspan="1">



  Amazon


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    MULN<span/>
  </td> <td align="" valign="top" colspan="1">



  Mullen Automotive


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    BBY<span/>
  </td> <td align="" valign="top" colspan="1">



  Best buy


  </td> </tr>  </table><h6>Random reads</h6> <p>Meet Snoop Loopz, the latest addition to the rapper's expanding empire.</p> <p>Digging and decorating your dead: tradition in this Indonesian village.</p> <p>Who's the Boss?  Not Gen-X.</p> <p><strong>Need to Know starts early and is updated until the opening bell, but sign up here to get it once in your inbox.  The e-mailed version will be sent around 7:30 am Eastern.</strong>


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