Market Pullback Amidst Spike In COVID-19 Cases - RealCrowd Recap

July 6, 2021
Market Pullback Amidst Spike In COVID-19 Cases - RealCrowd Recap

Weekly Metrics

20192020Rent Payments Collected by April 6th82.9%78.0%Rent Payments Collected by May 6th81.7%80.2%Rent Payments Collected by June 6th81.6%80.8%*Data brought to you by NHMC Rent Payment Tracker

CurrentPrior Week Change10 Year Treasury0.685%-0.208%DOW25,128.17-1,153.65S&P 5003,002.10-110.25Unemployment Rate13.3%---Total US COVID-19 Cases2,024k+149kTotal US COVID-19 Tests22,420k+3,510k*Metrics as of 11am EST on Friday, June 12

RealCrowd's Thoughts

What's Happening Now

As we’ve been watching and wondering over these last few weeks, it seems that the markets also questioned the reality behind the recent run up in equities. The Dow, S&P and Nasdaq were all down on Thursday, showing losses of roughly 6.9%, 5.9% and 5.3% respectively. The pullback is speculated to be a reaction to a spike in COVID-19 cases across the country as states begin to reopen from the lockdowns.

Since the beginning of June, 14 states and Puerto Rico have seen their highest ever weekly average of new cases since the beginning of the pandemic (WaPo). This thing is far from over.

Will this be a quick retest of confidence in the markets? Will these losses rebound as quickly as the earlier coronavirus related drops? Or will the market continue to act as irrational and erratic as it has been since the beginning of this crisis? Only time will tell!

Something to watch

We recorded two incredible episodes of the podcast this week and are wrapping up production to release them. We had the pleasure of hosting Peter Linneman, the Founding Chairman of Wharton’s Real Estate Department and founding co-editor of the Wharton Real Estate Review. We touched on everything from the professionalization of this industry to his take on how the health impacts of the current crisis will play out.

We’ll follow that episode with another from a longtime friend of the show, Paul Kaseburg, who gave us an update on how their view of forecasting is changing in the current times and what key metrics they’re following as the uncertainty unfolds. 

Let us know what you’d like to hear on future episodes - you are the reason we produce them! Stay safe out there, wash those hands and remember, the only way we’re going to get through this is together.

-Adam Hooper, CEO

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*If you like this post, be sure to enroll in our free six week course on the fundamentals of commercial real estate investing — RealCrowd University.*

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