Covid-19 Market Update #9

Well…… where do we start today’s update?

Let’s start with today’s song.

The Score, Legend: https://www.youtube.com/watch?v=jecQcgbyetw

A dreamer with the fever to be great was all I ever want, was all I ever wanted
A finder with the fever for the fame was all I ever want, was all I ever wanted

Last night at our Live event I discussed how broken financial models are as the fed is getting dangerously close to pushing the risk-free rate of return to zero. VaR – value at risk – absolutely blew out. This tool is used to evaluate the risk of an asset, or portfolio of assets against the likelihood of losses over a specific period of time.

So what happened?

“The Biggest VaR Shock In History”: Here’s The Reason Behind The Market’s Insane Moves In One Chart

“effectively nine years of previous equity-bond over-weights have been unwound in only three weeks.”

NY Fed Announces Emergency QE, Will Buy $37BN In Bonds; Yields Tumble

The Fed this morning announced an emergency $33B Treasury buy back; which threw the 10 and 30Y negative when trading opened.

The market is not confident in fiscal and monetary policy makers to stem the tide of the coming recession.

YEP – I said the R word.

A few more weeks of tepid – or negative – growth – and we, the entire world – should be in a recession by Q3. IF we can recover quickly we may right the ship, however, am I unsure the consumer will have the confidence and/or all central banks can coordinate, after being broken by quarantine.

You can’t stop the world from spinning without negative consequences. – JB

Real Estate Investors – This is how legends are made…

Our best guess is you have 3-6 months to capture some great deals. The capital markets and COVID-19 have provided enough attention to add turbidity to the real estate market. The near-term future gets a little cloudy and real estate investors lose their fortitude and focus.

Won’t stop till we’re legend

This is how Legends are made.

I absolutely love markets like this.

There is no data I’ve found that predicts a real estate market crash or recession…… in Texas.

I am seeing a litany of deals “bust out” or placed into abeyance due to the near term uncertainty….. real estate investors are backing away from some great deals.

I do not see a reduction in prices, cap, but I do see less investors in the active market closing deals. Less competition means more for the THE Mastermind and The Mr Texas Real Estate Team.

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