Westchester and Fairfield County Business Journal 041320

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APRIL 13, 2020 VOL. 56, No. 15

INSIDE

westfaironline.com

‘Real suffering’

A DISMAL 2020 FOR REAL ESTATE

COVID-19 CHANGES THE PLAYING FIELD FOR INVESTORS PAGE

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GRIM REALITIES

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LIFE AFTER THE PANDEMIC

BY PHIL HALL phall@westfairinc.com

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ith the stock market bouncing and the words “recession” and “depression” being tossed about like New Year’s confetti, it is easy to become confused and anxious over one’s investment portfolio. Financial experts queried by the Business Journal offered their advice on how

to react to the tumult of the COVID-19 crisis.

KEEP POLITICS OUT OF IT

One aspect that should not be part of an investment strategy is a political agenda. According to Keith McCullough, CEO of Stamford-based Hedgeye Risk Management, more than a few people offering investment advice are “politically compromised” and are offering scenarios based on

BY PHIL HALL

political hopes rather than financial realities. Speaking on a recent broadcast of Hedgeye’s online program “The Macro Show,” he cited unnamed figures who predicted a stock market that will stop plummeting and an economy reopening sooner than later. “A lot of people need that to happen,” McCullough said. “I get it. But that doesn’t mean it’s going to happen. “The big problem that you really need to think about is who’s telling me this, as opposed to tell me what is happening with the data and what’s most likely to happen next. You’re watching the crowd react viscerally and emotionally to every single tick with absolutely no process and no experience.” » INVESTORS

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phall@westfairinc.com WHEN CONSIDERING THE COMMERCIAL AND RESIDENTIAL REAL ESTATE

markets within the economic chaos brought about by the COVID-19 pandemic, two surveys present a situation that is not lacking in bad news — yet pockets of optimism remain amid the doom and gloom. On the commercial side, real estate brokerage CBRE surveyed its capital markets professionals on March 17 to determine the changes it was witnessing from their clients. The poll found 50% of the company’s capital markets team saw sellers delay bringing assets to market and more than 70% expected more of this disruption into the next 30 days. The survey found

the size of bidding pools contracting, with 65% of respondents reporting they were getting smaller and 80% expecting them to shrink further. The survey also found 50% of buyers trying to “re-price” deals that are under contract to a reduced figure while two-thirds of buyers asked for 5% price reductions. Spencer Levy, CBRE’s senior economic advisor and chairman of Americas research, addressed the issue of the equity real estate capital markets in a March 18 flash call, describing a “rapidly changing landscape” that saw disruptions during the early part of March, but which began to stabilize as the month progressed. “Most deals ... are » REAL ESTATE

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