Observations by a Beverly Hills Realtor: Endre Barath,Jr.

Hello Endre - our everyday life continues to combine a lot of events and things of all kinds.  Occurring simultaneously as well as independently.  Or seemingly so.   Maybe there is an interconnectedness to the big picture.  Or perhaps it's a part of the minuteness of details.  

Good morning, Endre... I second that motion:  "Personally, I think the Fed needs to stop meddling and let the economy fair on its own."

Another Day, another worry for some who are ready to sell and ready to buy Endre!

Silvergate is also shutting down.  What is very interesting about both cases is that it was US Treasury Bonds loss in value that crippled them, an investment that is thought to be ultra safe, but really is not.  As interest rates rise, the principal in those bonds drop.  You have two very innovative companies failing because they invested in time honored investments.  It makes me wonder how many other companies are in similar situations.  It will get worse as the Fed continues on their merry way to hike rates and continue with their quantitative tightening.

On a personal note, my stock investments (and bonds) have been hammered.  It makes me chuckle every time I hear an expert say we are headed for a soft landing. I define soft landings much differently. 

Hello Endre Barath, Jr., I completely agree with what you said, the Fed needs to stop meddling but will it happen, probably not. Almost all of my buyer clients since November 2022 have been investors from other countries, all-cash buyers purchasing new townhomes. Listings are definitely taking much longer to get offers. We shall see what the future brings our way.

Endre I keep a very close watch on the market and what's happening every day.  And I agree the CPI will be interesting and will show a bigger picture. I do expect the fed to keep hiking. Besides the insane administration financial etc policies and the fed hiking rates we're heading for a hard landing on many levels for a lot of people.  It reminds me very much of the 70's. I learned a lot from my Dad back then as to what to do and what to look for.  Albeit back then I had no real idea! But it did get me started down the path of asking questions and learning about all this stuff.  And here we are all these years later....we're back to square one.  Makes you wonder how ignorant people in charge can be about how to create prosperity - very.

And with all that said - real estate in my area keeps going up.  We're still in a sellers market, just not a crazy frenzy market - thankfully! Homes are selling within a few days to a week and closing. A lot of people are still moving here from other states and I don't see that ending anytime soon.

Endre Barath, Jr.  I agree whole hardly with you - The election is coming!  Who will save the day?

Endre the full impact of this bank failure is still to be seen.  I can't see anything good coming out of this.

Hi Endre Barath, Jr. - This is something to watch closely.  However, I still feel that the biggest reason we are having high inflation is because of the terrible policies on energy.  This administration has no concept of how its policies ripple across the American and global economies.  Higher fuel prices affect all sectors of the economy at every level.  That is why we are in the mess we are in.  Now the powers that be think that handcuffing corporations and high-wage earners will bring in a bounty to the Federal coffers.  Many will relocate out of the country further decimating our ability to manufacture goods.  

I realize that some are excited that baseball season is coming soon - but this is not the kind of curveball anybody wanted.

Can we fire our fed chair? Powell is not the sharpest tool in the shed and he is simply 'playing' with our lives!

Stay alert, focused and think for yourself - just as you laid out, Endre. Great information!