Reviewing the first half- 2022 Stocks, Real Estate & Economics | The Godfather | EPISODE 3

First 6 months of year: Implosion of crypto, plunge in tech stocks, sell off in bonds, soaring inflation (CPI report then was 9.1% (June CPI) WHEN THIS WAS FILMED in MID JULY, BUT LATEST REPORT AS OF AUGUST 10TH as we upload this, it came down for the month of July to 8.5%)

NASDAQ -29.5%
Crypto bitcoin fell -70% from it’s peak of $67,802 last year, ETHER -80%
NYSE FANG+ -34% which tracks apple, amazon, Microsoft, google etc

S&P 500 -20.6% fallen by the most in the first half of a year since 21% loss in 1970 when economy was in recession during Paul Volcker’s time when he forced economy into recession in `980.
Tech Stocks -27.2%
Gold -1.3%
Energy Stocks +20.2%
10yr yield rose highest level since 2011 but has abated now but likely to fall again and maybe once recession is here maybe more will be confident in a bounce back rather than now more a speculation

Equity in homes grew almost 20% in Q1 2022 reaching $27.8 trillion. A record according to the Federal Reserve!

Equity is the difference between the market value and the mortgage balance.
Rising home values are boosting the finances of the Americans who already own them, but rising rates made it more expensive for homeowners to use that equity.

• 11 trillion of that equity is tappable equity, it’s the amount a homeowner can borrow while holding on to at least 20% of the home’s equity
• for perspective the avg tappable equity available to Americans w/mortgages increased to $207k a record. AND, 75% of owners with that 11t equity belong to borrowers with mortgages below 4% according to black rock so more reasons they don’t sell to keep inventory down.

Two ways to tap into equity.
• HELOC (home equity line of credit) and cash out refi.
• HELOC- homeowner borrows money on the equity they have and want to use. They pay interest on the amount borrowed, usually these rates tend to be lower as it often tied to the fed funds interest rates.
• Cash out refi, homeowner takes out the cash from their equity, and the cash taken out of the home gets added to the outstanding mortgage, meaning the new rate is applied to a higher balance.

Industrial Real Estate eyeing cold storage warehouses

New developers are entering the sector, which is considered something of a niche in the industrial real-estate market because of the special demands of refrigerated warehousing. A CBRE survey in April found about 40% of real-estate investors were interested in cold-storage, up from 7% in 2019.

Director of Research at CBRE said, “The cold-storage market is largely insulated from an economic slowdown because people have to keep eating, whether they are buying food at a grocery store or sitting down at a restaurant, Mr.
So far, about one-third of the 3.3 million square feet under development has been leased, Mr. Walaszek said

Marc Duval, a managing director in capital markets at real-estate investment services firmJLL, said a big share of U.S. refrigerated warehousing is “inefficient and dated,” which will also drive demand for new sites that can operate more efficiently.

Developers, brokers and other industry experts say there is room in the market for more space, particularly in areas where the population is growing rapidly, including Texas, Arizona and Florida.

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