The S&P500 lost 10% in six days the – fastest drop ever
The luxury of experience is never forgetting the lessons.
The last 96 hours the stock market has experienced massive expansion in volatility. See VIX, a measurement for volatility below, it is up 31% in less than 2 weeks, most of those gains were in the last 7 days.
So, what is going on?
Uncertainty – and there is lots of it. I posted a report in the Mr Texas Real Estate Facebook group that y-o-y auto sales in china dropped 90% in the last two weeks. Click this link to Join, it is free.
Just in my corner of the world – I have two first hand accounts of big deals, both +$50MM placed into abeyance until an accurate assessment of the COVID-19 financial impacts on the capital markets can be assessed. Trust me, these are not the only deals on hold, billions in capital is reassessing closing dates of deals over the next three months.
Regardless of COVID-19s mortality rate, more people die each year from the flu and car accidents, its’ financial impact is crushing capital markets. That’s not hyperbole, it is fact. The S&P 500 lost 10% in the last six days – fastest drop ever.
Rumors & Predictions:
- China is imploding. Retail sales are way down – the auto data is the tip of the iceberg.
- Capital flight to “safe” assets is accelerating – bonds, gold, real estate – last 4 hours inquires about our real estate fund are way up.
- Expect two interest rate reductions – March and June – we may see rate cuts starting at 125bps that’s huge.
So what did we do today in our investing business? Rob is in Corpus overseeing the last few rehabs, we made an offer on a triplex, signed a contract on a 5 unit @ 15CAP, getting close to signing a deal on a +10 unit, I should have a contract on my desk for two duplexes at $350K – gross rents $4,800 etc…….
In other words, we’ve not stopped investing.
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