Webinar | Positive Developments Amid Rising Fears: Investment Commentary Panel

Positive Developments Amid Rising Fears: Investment Commentary Panel

Join Zoom Meeting
https://zoom.us/j/653354324pwd=VnQrL2ZuRkpIRnVjTWFQWkQvdmEvdz09

Meeting ID: 653 354 324
Password: 221669

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We are in a very fluid moment as individuals, housing providers, and real estate entrepreneurs. While we have been through moments like this before including the stock market crash in 87', September 11th, and the Great Recession, the fact is that we will move beyond this in time. With time comes patience and with logical and sound judgment. Join ICOR for a perspective on the economy, the financial sector, and the housing market as we come together for a conversation on the best practices.

Guests:

Rebecca McLean, Executive Director, National Real Estate Investors Association

Charles Tassell, Director of Legislative Affairs, National Real Estate Investors Association

David Nielson, Director of Lending, Boomerang Capital Partners

Investors clearly are worried about several issues. Below we briefly review the key concerns, before shifting to consider some of the potential positive developments.

+Landlord-tenant relationships: including how to proceed through potential quarantine, tenant financial hardship, & how to navigate maintenance requests

+With the FED dropping rates near zero, what investors should be doing or considering during this time

+Best Practices for now, how do investors and landlords navigate this fluid moment

OVERVIEW: The 11-year bull market came to an end last week, as sharp declines in financial markets followed increased fear about the coronavirus and an unexpectedly sharp drop in oil prices. The month of March has been a turning point for prior cycles as well, with the trough of the Great Recession occurring in March 2009 and the peak of the Internet bubble occurring in March 2000. Last week brought the largest one-day decline in the U.S. stock markets since October 1987. Since the beginning of this drawdown in mid-February, the S&P 500 has declined more than 20%, with energy, financial, and industrial sectors down even more. Most European stock markets are down more than the U.S.

While there is still much uncertainty about the future, there are some positive developments to consider as this situation progresses.

+Lower interest rates and lower energy costs will help the consumer during this disruption. Consumers were already well-positioned—given the high savings rate and low unemployment rate—entering this event, and these developments should provide some short-term support.

+The U.S. Federal Reserve promptly cut its short-term interest rate target by 0.5% on March 3 and announced an additional 1.0% cut over this past weekend, dropping its target rate to zero. This is the first time since the financial crisis that the Federal Reserve cut target rates in between scheduled meetings. Hence, monetary policymakers are keenly focused on the situation and trying to stay ahead of the curve.

+In addition, the Federal Reserve announced on March 12 that it would provide more than $1 trillion in additional liquidity to the short-term funding markets. On March 15, the Fed also restarted its asset purchase program, targeting $700B in government and mortgage bonds.