This morning, at market open, I was meeting with my attorney, when Chairman Powell introduced a 50bps rate cut. Just as the market opened I got on facebook live and predicted a 2-3% retraction in the capital markets and that this maybe the new norm. FB Live Video: https://www.facebook.com/100001547259116/videos/2913437305384483/
Powell took the mic, press conference, and shared with the public his thoughts about the unprecedented rate cut. You can read the transcript here, including the brief Q&A: https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20200303.pdf
I drove home, turned on the TV, and tuned into the business channels. The market was not impressed with the cut. The reaction was so bad, the market is now second guessing their positions from the day before.
One conversation that was most fascinating is the possible change to fiscal policy – the purse strings that congress controls. Rumor on the street is – K street – is that we may see an emergency tax break via payroll taxes.
I am interested to see where all this goes, all it keeps telling me is to buy more real estate. Lower rates, more money for buyers, screams sellers market. We, Texas, are already experiencing a massive housing shortage, Houston only has 3.5 months of inventory – its’ been a seller’s market for YEARS – there is ZERO economic data that says that is changing in the next few YEARS.
If you think real estate is expensive now, just wait – JB
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
Register for one of our online workshops
Subscribe – to the Texas Real Estate Radio Network YouTube channel
See you online!
Mr Texas Real Estate