I’m busy cramming for my broker exam so haven’t had a lot of time to put together a lead story. However, there is still a ton of interesting things happening the the world, real estate and otherwise so here’s your Tuesday linkfest:
Living On The Edge: Most rate forecasts indicate that the Federal Reserve will face a difficult decision sometime in 2019 – whether or not to push the federal funds rate above the 10 year yield and invert the yield curve.
Flipped: Private equity has gotten so hot that even second-hand funds are selling at a premium as too much capital continues it’s pursuit of too few good investment opportunities.
High Coupon: The rise of incredibly expensive unsecured personal loans is a troubling development in recent years.
On the Rise: WeWork is on pace to double it’s revenue this year as it expands around the world. However, this doesn’t change the fact that it’s still losing a massive amount of money in an incredibly strong economy.
Diminishing Returns: Rising US interest rates and dollar volatility against the yet and won are eating into the returns of Japanese and Korean investors in US commercial real estate as hedging costs soar.
Supply Meets Demand: A big spike in Seattle area homes for sale is slowing price growth because housing is not immune to basic economics.
On the Rebound: Freddie Mac projects that the home ownership rate for young adults will increase to nearly 60% from around 35% today as incomes increase and they start families. This number is massive if accurate and I actually thought that it was a typo when I first read it, TBH.
Stampede: Wealthy people are flooding into Florida as a result of the tax reform law that dramatically reduced deductions for residents of high tax states. I wonder how my beloved Florida swamp people are going to like an influx of billionaires. But See: A new study by Stanford finds that migration among millionaires due to tax increases is almost non-existent in California.
Monopoly: How one Chinese businessman came to control 70% of all Chinese fireworks entering the United States.
Buy Low: Instagram is now estimated to be worth more than $100 billion. I’m old enough to remember being shocked when Facebook paid an “astounding” $1 billion to purchase the photo sharing app back in 2012. Consider this one of many reasons why Mark Zuckerburg is the 3rd richest person on earth and I’m writing a free blog on WordPress.
Game Changer: How blogging changed Wall Street by offering transparency and unlimited access to investment advice when financial institutions wouldn’t.
Chart of the Day
Four of the top five reasons on here are economic. This. Is. Not. Sustainable.
Defining Moment: A deputy sheriff shot a large alligator with an AR-15 rifle after it trapped a teenage girl in a tree for over an hour because Florida.
Sea Weed: A man caught a 2 lb brick of marijuana while out fishing because Florida.
The Dog Ate It: A man arrested for DUI with booze on his breath and an open bottle of rum in his car claimed that it was his dog driving erratically and not him because Florida.
Send Nudes: Samsung phones might be sending private pictures to random contacts. This is yet another reason that I have an iPhone.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
Visit us at Landmarkcapitaladvisors.com