June 10-14: Musk’s Big Pay Day, Home Hunting Woes, No Surprise with the FED

Elon Musk is set to receive a big payday. According to Reuters, and Elon, “Tesla shareholders were set to approve Elon Musk’s $56 billion pay package in what is being seen as a thumbs-up to his leadership – and an enticement for keeping his focus on the electric vehicle maker.” Elon posted on his social media platform, X, charts that showed the vote to pay himself and relocate the company headquarters to Texas, would pass by large margins.

In the May issue of our Financial Forecast, editor Steven Hochberg commented on the loyalty of “Tesla diehards.” 

“Vanda Research reports that amidst a decline of 44% from January to April of this year, individual investors poured a net $5.9 billion more into Tesla shares. As one acolyte says, “I trust Elon Musk.” As EWFF explained in February 2023, Musk is a bull market hero whose image is linked to the uptrend in stocks.”

How long will Elon’s hero status last? Check Financial Forecast for answers.

To Read Steve’s full commentary on Elon Musk and more check out our Financial Forecast Service

Looking to purchase a home? A new report from the American Enterprise Institute Compared first time home buyers from 2013 to 2023. The report showed that in 2013 the average income requirement of a first-time home buyer was $75,000. Now in 2023 the average income requirement has jumped to 116,000. That means the 5% downpayment has nearly doubled going from 7,000 to 13,000. And what about the average home price? Well, it has almost doubled from around $233k in 2013 to $406k in 2023. What’s going on in real estate?

In our new special release, “the (Un)Real Estate Report,” we check the vital signs of property markets in the U.S., U.K., Germany and China to help you understand the true current state of global real estate — and be better prepared for what’s likely next. You can get instant access inside Club Elliott Wave.

This week the Fed kept its key interest rate unchanged and announced that only one cut is expected by the end of the year. The Federal Open Market Committee anticipates a more aggressive rate cutting path for 2025 with 4 reductions expected.

Murray Gunn, Head of global research at EWI, appeared on Wave Length ahead of the meeting and dove deep into how the Fed has no bearing on what the market does, it only follows.  His advice is if you want to “Survive ‘till ’25, don’t rely on the Fed.”

Watch Murray’s Interview on Wave Length to hear all his thought on the FED and where interest rates may be heading.