Covid-19 Market Update #3

See I told you so. – Rush Limbaugh

If you missed last night’s webinar I predicted what would happen this morning. The PPT called CoBs across the world to ensure the stock market doesn’t collapse. If you were watching the repo market last night you noticed that it was oversubscribed – the market has no liquidity – cash. This is why Bank of Japan stepped into to prop up the ETF market Sunday night.

This morning the Fed stepped in with a 50bps rate cut.

“This is the largest rate-cut since the fall of 2008, and just the ninth emergency rate cut in history…”

The pic above is from the FRED database. It shows 30 year mortgages since 1997.

Do you remember way back in 2017 when everyone was screaming about rate hikes? Trump takes to twitter and calls out the fed to reduce rates and something insane happened – they listened. The next day I got behind the mic on our radio show and declared that rates are going nowhere until Trump is out of office.

If you think real estate is expensive now, just wait – JB

Yesterday, the 10 year note imploded to nearly 1%, the lowest ever. A 15 year fixed rate mortgage is loosely tied to the 10 year note. As predicted late last year, I fully expect to see 15 yr mortgages below 2.66% this year – which has only happened three other times in history.

Expect the 30 yr bond, fed funds, and LIBOR all to take the plunge, making your 30 year fixed, ARM, and LoC cheaper.

So what does all this mean?

This is total war on cash. Negative rates are in the foreseeable future. GET YOUR CASH TO WORK!!!

Now the question is where do you put your money? We put ours in real estate.

If you want to actively invest in real estate – Join our Mastermind. Membership costs $7,500 for the first year.

If you want to passively invest in real estate – Join our fund, The American Recovery Fund. The Fund pays 9% return and 10% equity when a property is sold.

SO…...here is what are we doing during Lockdown 2020.

Lots of real estate training; most of it free. We are going to be hosting a ton of free webinars and “lives” throughout the quarantine.

There are a few ways to enjoy our content:

Join the – Mr Texas Real Estate Facebook group

Join our email list

Register for one of our online workshops

Subscribe – to the Texas Real Estate Radio Network YouTube channel

See you online!

Jason Bible
Mr Texas Real Estate