It appears Wall Street is about ready to move on to its next existential crisis.
The U.S. commercial real estate market is colossal: $20 trillion worth of buildings – offices, retail stores, hotels, factories, warehouses and the like – serving as home to American businesses. American banks currently hold about $2.7 trillion in commercial real estate loans on those buildings, and about 80% of that debt is held by smaller, regional banks.
The problem is, property valuations have been falling since the pandemic changed the way we think about work, and higher interest rates aren’t helping, either. Much of the debt is now coming due, and those regional banks may have trouble collecting. We are already starting to see some credit downgrades, and there are fears of another round of bank failures like those we saw last spring.
Those fears, of course, may turn out to be overblown. Construction of new buildings is slowing down, and the number of loans coming up for refinancing will drop sharply next year. But this is an issue likely to stay in the headlines for some time to come.
Our thoughts about what investors might face in 2024 – from the economy, to the financial markets, to the presidential election. (Running time: 58 minutes)
Does the thought of investing when the markets are at all-time highs make you nervous? History might give you some reassurance. (Reading time: 2 minutes)
Chinese investors are wisely opting to diversify their portfolios internationally – and Beijing has apparently had about enough. (Reading time: 2 minutes)
Compared with the U.S. stock market, China’s market is tiny. In fact, so are the markets of every other country in the world. (Reading time: 2 minutes)
Auto insurance premiums are 26% higher than a year ago nationwide – and Missouri drivers are seeing bigger increases than any other state. (Reading time: 2 minutes)
Here are 10 things to keep in mind as this year’s tax deadline approaches. (Reading time: 6 minutes)
Depending on your sales proceeds, you may or may not owe taxes on the profit. Here’s how to tell. (Reading time: 4 minutes)
Accountants are in short supply this tax season. Here’s what the IRS says you should be looking for. (Reading time: 3 minutes)
Hiring someone to help you with your finances is a huge decision – and the answers to these questions could help you make it. (Reading time: 8 minutes)
It’s tempting to compare today’s financial challenges to the “kinder and gentler times” our parents enjoyed. But were they really better off? (Reading time: 5 minutes)
Words to the Wise
“How many times does the end of the world as we know it need to arrive before we realize that it's not the end of the world as we know it?”
– Michael Lewis
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
Links are being provided for informational purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brown Family Wealth Advisors and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Expressions of opinion are as of this date and are subject to change without notice. Past performance does not guarantee future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.
Investors should consider, before investing, whether the investor’s or the designated beneficiary’s home state offers any tax or other benefits that are only available for investment in such state’s 529 savings plan. Such benefits include financial aid, scholarship funds, and protection from creditors. There is also a risk that these plans may lose money or not perform well enough to cover education costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state.
Unless certain criteria are met, Roth IRA owners must be 59 ½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Brown Family Wealth Advisors is not a registered broker/dealer and is independent of Raymond James Financial Services.
These policies have exclusions and/or limitations. Guarantees are based on claims paying ability of the issuing company. Long Term Care Insurance or Asset Based Long Term Care Insurance Products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½ may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. Please consult with a licensed financial professional when considering your insurance options.
Dividends are not guaranteed and must be authorized by the company’s board of directors.
