How Long Will It Take the Market to Recover?

5,270 Views | 54 Replies | Last: 3 yr ago by PCC_80
Bill Clinternet
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Quote:

Investors who suffered through 2022s dismal market are probably wondering when things will get back to normal. Most major asset classes have posted strong returns for the year to date through Jan. 26, but there's no guarantee these positive trends will continue. A potential economic recession, the pace of future interest-rate increases, and whether inflation will continue moderating are all wild cards that could cause another series of market drops.
Source Article

The rapid rise in interest rates and ongoing uncertainty around the timing needed to reduce inflation to the fed's target levels has caused significant disruption in the capital markets and a period of price discovery within real estate values. The result is very limited transaction activity and inefficient debt for most assets. Most of the transaction activity has involved forced sellers due to liquidity needs, debt maturities or properties with fixed-rate assumable debt. Deals getting done have seen around a 50-100 bps increase in cap rates due to the increased base rate and widening of spreads. The market is pricing in a steady reduction in rates in 2024 as the levels of inflation continue to decline. There remains a significant bid/ask spread between buyer and seller during this period of uncertainty, but it's starting to narrow. As the market stabilizes and the capital markets reopen, expect debt spreads to compress and transaction activity to pick up.
“A man who has nothing which he is willing to fight for... is a miserable creature who has no chance of being free.”

— John Stuart Mill----On Liberty
fka ftc
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Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
Bill Clinternet
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fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.

“A man who has nothing which he is willing to fight for... is a miserable creature who has no chance of being free.”

— John Stuart Mill----On Liberty
fka ftc
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Neehau said:

fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.


Not really.
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
txags92
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fka ftc said:

Neehau said:

fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.


Not really.
Dem pres with fully R congress usually leads to improving economy, while R pres with dem congress usually doesn't.
fka ftc
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txags92 said:

fka ftc said:

Neehau said:

fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.


Not really.
Dem pres with fully R congress usually leads to improving economy, while R pres with dem congress usually doesn't.
Usually no longer applies. DNC initiated warfare politics in 2016 and show no signs of compromise ever again.

Those are the facts. Its utterly naive to look to the past to predict this out of control socialist movement on the left.
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
Frederick Palowaski
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Neehau said:

Quote:

Investors who suffered through 2022s dismal market are probably wondering when things will get back to normal. Most major asset classes have posted strong returns for the year to date through Jan. 26, but there's no guarantee these positive trends will continue. A potential economic recession, the pace of future interest-rate increases, and whether inflation will continue moderating are all wild cards that could cause another series of market drops.
Source Article

The rapid rise in interest rates and ongoing uncertainty around the timing needed to reduce inflation to the fed's target levels has caused significant disruption in the capital markets and a period of price discovery within real estate values. The result is very limited transaction activity and inefficient debt for most assets. Most of the transaction activity has involved forced sellers due to liquidity needs, debt maturities or properties with fixed-rate assumable debt. Deals getting done have seen around a 50-100 bps increase in cap rates due to the increased base rate and widening of spreads. The market is pricing in a steady reduction in rates in 2024 as the levels of inflation continue to decline. There remains a significant bid/ask spread between buyer and seller during this period of uncertainty, but it's starting to narrow. As the market stabilizes and the capital markets reopen, expect debt spreads to compress and transaction activity to pick up.


Have you ever written anything that you haven't ripped off from someone else?
fka ftc
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Has their dear leader and idol Joe Biden ever uttered an original word?
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
txags92
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fka ftc said:

Has their dear leader and idol Joe Biden ever uttered an original word?
Only when he is lying.
txags92
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fka ftc said:

txags92 said:

fka ftc said:

Neehau said:

fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.


Not really.
Dem pres with fully R congress usually leads to improving economy, while R pres with dem congress usually doesn't.
Usually no longer applies. DNC initiated warfare politics in 2016 and show no signs of compromise ever again.

Those are the facts. Its utterly naive to look to the past to predict this out of control socialist movement on the left.
I wasn't trying to predict anything. Just countering the argument made that republicans cause recessions. Control of congress has way more to do with economic policy than who holds the presidency.
Bill Clinternet
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Frederick Palowaski said:

Neehau said:

Quote:

Investors who suffered through 2022s dismal market are probably wondering when things will get back to normal. Most major asset classes have posted strong returns for the year to date through Jan. 26, but there's no guarantee these positive trends will continue. A potential economic recession, the pace of future interest-rate increases, and whether inflation will continue moderating are all wild cards that could cause another series of market drops.
Source Article

The rapid rise in interest rates and ongoing uncertainty around the timing needed to reduce inflation to the fed's target levels has caused significant disruption in the capital markets and a period of price discovery within real estate values. The result is very limited transaction activity and inefficient debt for most assets. Most of the transaction activity has involved forced sellers due to liquidity needs, debt maturities or properties with fixed-rate assumable debt. Deals getting done have seen around a 50-100 bps increase in cap rates due to the increased base rate and widening of spreads. The market is pricing in a steady reduction in rates in 2024 as the levels of inflation continue to decline. There remains a significant bid/ask spread between buyer and seller during this period of uncertainty, but it's starting to narrow. As the market stabilizes and the capital markets reopen, expect debt spreads to compress and transaction activity to pick up.


Have you ever written anything that you haven't ripped off from someone else?
All the time.
“A man who has nothing which he is willing to fight for... is a miserable creature who has no chance of being free.”

— John Stuart Mill----On Liberty
PCC_80
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You are assuming that this Admin wants the market to recover. I am afraid that they don't and are actively working to push it a lot lower.

The Dems/Libs want to punish the middle and lower class and rob most of them of their wealth and retirements.

Sadly almost half the people in this country fully support this happening in the name of Equity or because of White Supremacy or because they hate people that have been moderately successful in their lives.
BluHorseShu
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Frederick Palowaski said:

Neehau said:

Quote:

Investors who suffered through 2022s dismal market are probably wondering when things will get back to normal. Most major asset classes have posted strong returns for the year to date through Jan. 26, but there's no guarantee these positive trends will continue. A potential economic recession, the pace of future interest-rate increases, and whether inflation will continue moderating are all wild cards that could cause another series of market drops.
Source Article

The rapid rise in interest rates and ongoing uncertainty around the timing needed to reduce inflation to the fed's target levels has caused significant disruption in the capital markets and a period of price discovery within real estate values. The result is very limited transaction activity and inefficient debt for most assets. Most of the transaction activity has involved forced sellers due to liquidity needs, debt maturities or properties with fixed-rate assumable debt. Deals getting done have seen around a 50-100 bps increase in cap rates due to the increased base rate and widening of spreads. The market is pricing in a steady reduction in rates in 2024 as the levels of inflation continue to decline. There remains a significant bid/ask spread between buyer and seller during this period of uncertainty, but it's starting to narrow. As the market stabilizes and the capital markets reopen, expect debt spreads to compress and transaction activity to pick up.


Have you ever written anything that you haven't ripped off from someone else?
Most posters on F16 rip off their comments from somewhere else...There are a select few who actually have a deep knowledge of certain topics. But what's wrong with posting info from somewhere else? Granted if it was copied it should be in quotes.
fka ftc
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Disagree. Its the obvious trollers and nonsensical lefties that post content from other sources or continually spam the board with twitter threads to unknown Twitter bots.

Again, ripped content favors heavily to one side of arguments.
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
UTExan
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If there's any good news, it is that the administration is starting to approve greater drilling on public lands at a pace which distresses environmentalists. Our financial advisor says we will know by spring's end how the market will come back.
https://biologicaldiversity.org/w/news/press-releases/biden-administration-oil-gas-drilling-approvals-outpace-trumps-2023-01-24/
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
Definitely Not A Cop
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If only we let socialists run everything, the economy would be running much better. Actual history has never shown this, but have faith, we will get socialism right this time.
IslanderAg04
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Post this in F57, wrong forum.
fka ftc
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Definitely Not A Cop said:

If only we let socialists run everything, the economy would be running much better. Actual history has never shown this, but have faith, we will get socialism right this time.
We have to give it a try from the bottom up and the middle out. C'mon man, you have to start at the bottom and give free **** away until they grow, then get fat. And only the elitist get all the way to the top.
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
fka ftc
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IslanderAg04 said:

Post this in F57, wrong forum.
Cannot blame liberals for the mess in the B&I forum.
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
PCC_80
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Quote:

What has really killed us since 2001 is the spending--GWB was not good, Obama was off the charts bad, Trump spent too much, and now Biden's bunch is Obama 2.0, All have combined to ensure our bankruptcy at some point in the next century. If I had to guess, I suspect 2080-2100 when the eventual collapse occurs of our economy and currency, like the USSR, Argentina, and Greece all did.
I think that you are being way to optimistic. These *******s are not letting up and are doing everything they can to print and spend even more. I think that they know that the end is near and they have pulled out all stops to get everything they personally can before the collapse.
Bobaloo
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If that chart doesn't convince folks to invest for the long run then there is not much anyone can do to convince otherwise. From Hoover through DJT. The Great Depression, WWII, Nam, civil unrest, the resignation of a president, the 70s and inflation, the Dot Com bust, 9/11, Katrina, the Financial Crisis, the COVID sham, etc. Still the resiliency of the American people persisted. One other note: 43 was a crappy president.
JWinTX
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PCC_80 said:

Quote:

What has really killed us since 2001 is the spending--GWB was not good, Obama was off the charts bad, Trump spent too much, and now Biden's bunch is Obama 2.0, All have combined to ensure our bankruptcy at some point in the next century. If I had to guess, I suspect 2080-2100 when the eventual collapse occurs of our economy and currency, like the USSR, Argentina, and Greece all did.
I think that you are being way to optimistic. These *******s are not letting up and are doing everything they can to print and spend even more. I think that they know that the end is near and they have pulled out all stops to get everything they personally can before the collapse.


It took the Soviets 80 years to go bankrupt, Argentina look about 70 years, while Greece took about 60…our economy is much bigger than those three combined. The bankruptcy is inevitable, but until there is another currency to replace the US Dollar as trustworthy around the globe, it's not gonna really hurt you and I, assuming you're under the age of 30. But when it does, the mother of all change will occur all over the world.

If you want to prepare accordingly, move to a Red State and a rural or suburban setting that is growing. Buy some land, grow a garden, have a garage, etc…be self-sustaining. Buy guns and ammo….

But most importantly, pray. If and when the government and its thugs decide to come after you, they're gonna have more than you. You can buy time, no doubt….but not much. If this thing turns into the USSR or Mao's Red China, the purge will get rid of the useful idiots first (think actors, journalists, musicians, and professors), then they will start coming for you. It's how China operates still today…
samurai_science
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Neehau said:

fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.


So you have not actually read any history? Got it. This thread can now be ignored
TXAGFAN
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fka ftc said:

Disagree. Its the obvious trollers and nonsensical lefties that post content from other sources or continually spam the board with twitter threads to unknown Twitter bots.

Again, ripped content favors heavily to one side of arguments.
Youre not being objective, think of how many internet satire items are reposted here as fact, some of the multi page copy pastas the right posts, etc. Disagreeing with someone is not trolling also.
Stringfellow Hawke
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In May when Covid officially ends.
Rodney Ruxin
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fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,

Spending hasn't been any better at all with R's in office. Not one bit. And no, I'm not a Dem. But this trope needs to stop, it's pure delusion.

Also, not sure the open border as much of anything to do with the stock market. If anything it all, it may help it a bit (cheaper labor/more consumers). But there's really no reason to believe it would have a significant effect either way.
halfastros81
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Not that long imo once people believe the interest rate rising is going to stop. 6 mo to a yr.

The problem is that the interest rate increases are slowing down the economy but the unfettered spending and money printing keeps it from having the desired effect on inflation. Until the spending /money supply thing is fixed they will continue the increase in interest rates and jobs will be lost and at the same time prices will keep rising at over double the target inflation rate.
rab79
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fdr says hi...
NO AMNESTY!

in order for democrats, liberals, progressives et al to continue their illogical belief systems they have to pretend not to know a lot of things; by pretending "not to know" there is no guilt, no actual connection to conscience. Denial of truth allows easier trespass.
richardag
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PCC_80 said:

Quote:

What has really killed us since 2001 is the spending--GWB was not good, Obama was off the charts bad, Trump spent too much, and now Biden's bunch is Obama 2.0, All have combined to ensure our bankruptcy at some point in the next century. If I had to guess, I suspect 2080-2100 when the eventual collapse occurs of our economy and currency, like the USSR, Argentina, and Greece all did.
I think that you are being way to optimistic. These *******s are not letting up and are doing everything they can to print and spend even more. I think that they know that the end is near and they have pulled out all stops to get everything they personally can before the collapse.
"I think that they know that the end is near and they have pulled out all stops to get everything they personally can before the collapse."

Unfortunately I believe you may be correct.
Among the latter, under pretence of governing they have divided their nations into two classes, wolves and sheep.”
Thomas Jefferson, Letter to Edward Carrington, January 16, 1787
richardag
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halfastros81 said:

Not that long imo once people believe the interest rate rising is going to stop. 6 mo to a yr.

The problem is that the interest rate increases are slowing down the economy but the unfettered spending and money printing keeps it from having the desired effect on inflation. Until the spending /money supply thing is fixed they will continue the increase in interest rates and jobs will be lost and at the same time prices will keep rising at over double the target inflation rate.
It's a tragedy that the politicians either refuse to see this or are blatantly corrupted.
Among the latter, under pretence of governing they have divided their nations into two classes, wolves and sheep.”
Thomas Jefferson, Letter to Edward Carrington, January 16, 1787
halfastros81
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Many of the younger ones actually buy into the Modern Monetary Theory tripe. As Paul points out there is also a pretty big group that want to transfer power from the savers to the downtrodden to create the WEF model of feudalism where we have a small ruling class of politicians and corporate high fliers and a huge class of serf dependents.

Klaus Schwab quote roughly translated is "you will own nothing and like it".

My personal opinion is it's never going to fly here. Too many people have tasted freedom and success to allow for it however the brainwashing that we've allowed in schools for the past 35 yrs might just prove me wrong.
Bill Clinternet
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samurai_science said:

Neehau said:

fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.


So you have not actually read any history? Got it. This thread can now be ignored


https://www.jec.senate.gov/public/_cache/files/309cc8e1-b971-45c6-ab52-29ffb1da9bf5/jec-fact-sheet---the-economy-under-democratic-vs.-republican-presidents-june-2016.pdf
“A man who has nothing which he is willing to fight for... is a miserable creature who has no chance of being free.”

— John Stuart Mill----On Liberty
fka ftc
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Neehau said:

samurai_science said:

Neehau said:

fka ftc said:

Fully recover and set to move up again? Not until Rs take back senate and 1600 Penn.

Until then, DNC will spend, be feckless on the world stage, and let the border run amuck along with crime and deteriorating society.

Next,
Doubtful. Republicans cause recessions if history proves anything.


So you have not actually read any history? Got it. This thread can now be ignored


https://www.jec.senate.gov/public/_cache/files/309cc8e1-b971-45c6-ab52-29ffb1da9bf5/jec-fact-sheet---the-economy-under-democratic-vs.-republican-presidents-june-2016.pdf
Another Computer AIDS pdf file link. DO NOT CLICK.
"The absence of the word accountability is not the same as wanting no accountability" -unknown

"You can never go wrong by staying silent if there is nothing apt to say" -Walter Isaacson
halfastros81
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Perfect example
Of correlation does not equal causation
SMM48
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Better way to think of this is s&p 500 earnings. When do they reach previous high. Valuations will follow. New leaders will emerge.
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