Peak Uncertainty
We always adhere to the discipline that “if the market is open, we’re here”. The objective is to spot opportunity when it appears. Since the Fed started raising interest rates in March of 2022, however, opportunity sightings seem to have grown scarce and fleeting in our universe of real estate value and growth.
The Bond Market Conundrum
A funny thing happened during our long wait for lower interest rates. On September 18th, Jerome Powell finally began reducing short-term borrowing costs with a 50-basis point cut to the Fed Funds rate. At the time, 10y US Treasuries were yielding 3.70%.
Short Term Pain, Big Potential Gain
In January I will begin my 42nd year as a professional investor. Markets are always changing but there is a generally recurring rhythm and calendar.
Growth
Now that the Fed has at last started reducing interest rates, our attention can more singly be focused on growth opportunities in today’s economy. The obvious, and most talked about trend is artificial intelligence.