What I'm Reading Sweet Spot: Tight market conditions and rising land and construction costs in many markets and port cities led to limited development limiting new supply while demand for industrial warehouse space has continued to grow. Even though industrial returns are expected to decline, it should continue to perform...
March 16th – On Watch
What I'm Reading On Watch: There is a strong correlation between a dramatic rise in oil prices and recessions. Historically, not every recession is preceded by a 50% rise in oil but every 50% rise in crude has resulted in a recession but not for the reason that you may...
November 10 – In the Money
What I'm Reading Double Edged Sword: Long-underfunded state and local pension funds are reaping a historic windfall thanks to billions of dollars in record market gains and surplus tax revenues. Now they need to decide what to do with the money in an environment where assets are richly priced and...
November 8th – The Weakest Link
What I'm Reading The Weakest Link: Environmental and anti-business regulations make California the absolute worst possible place to be the US focal point for supply chain issues. Wall Street Journal Narrative Violation: Last week's taper announcement was met by rates falling substantially at the long end of the yield curve. ...
November 5th – Danger Zone
What I'm Reading Leverage: Just when you thought that the situation at west coast ports couldn't possibly get worse, contracts for 15,000 west coast dockworker union members are due to expire on July 1, 2022. Obviously, this situation gives the union a ton of negotiating leverage. As a point of...
March 8th – Gorging
What I'm Reading Gorging: Homebuilders are buying up undeveloped lots at a frantic pace in an effort to meet today's incredibly strong demand. However, that demand isn't permanent and the land grab could lead to pain for those participating. Ivy Zelman sums it up perfectly: “The biggest concern I have...