TRG | The Bottom Line – 10/15

“What do the banks say?” Ring ding ding… The economic view from banks provides a great window view of the consumer, the ultimate driver of housing and commercial activity, and we think it’s bullish for TRG coverage through 2022. BofA compared Q3’21 activity/stats versus Q3’19, which showed positive data on consumers that has staying power: net new consumer checking accounts are up 56%, average consumer checking account balances are up 40% to $10,600, new consumer investment accounts are up 9%, and on a YTD basis, consumer and small business payments are up from $2.3T to $2.8T. Jamie Dimon expressed a view that we economy is strong, and supply chain issues will be resolved over the course of the next year. Dimon noted that economic growth of 4-5% should be the focus, as debit and credit card spending is up, and the consumer sector remains healthy. When combined with low unemployment, low rates, and rising home prices, we believe there is exceptionally large spending capacity on new and existing homes for the next 1-2 years.