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Tag: real estate

  • U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

    U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

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    U.S. stock indexes finished sharply higher on Thursday, the second-to-last trading session of the year, with the Nasdaq Composite jumping 2.6%, erasing losses from earlier in the week.

    The three main indexes built on premarket gains after U.S. weekly jobless claims data showed the number of workers receiving benefits has climbed to the highest level since February, a tentative sign that the Federal Reserve’s interest-rate hikes might be slowing economic growth and inflation.

    How stocks traded
    • The S&P 500
      SPX,
      +1.75%

      rose 66.06 points, or 1.8%, to end at 3,849.28.

    • Dow Jones Industrial Average
      DJIA,
      +1.05%

      added 345.09 points, or 1.1%, finishing at 33,220.80.

    • Nasdaq Composite
      COMP,
      +2.59%

      climbed 264.80 points, or 2.6%, to finish at 10,478.09.

    On Wednesday, the Nasdaq Composite dropped 1.4% to 10,213, its lowest closing level of the year. The S&P 500 is up more than 6% from its 2022 low from mid-October, but the large-cap index remains down 19.2% year-to-date, FactSet data show.

    What drove markets

    The penultimate session of 2022 showed tentative signs of delivering some much needed festive cheer for the stock market as a hope for “Santa Claus rally” had earlier failed to materialize.

    MarketWatch Live: Is that you, Santa Claus?

    Stocks advanced on Thursday as data showed the number of Americans receiving more than a single week of unemployment benefits had climbed by 41,000 last week to 1.71 million, the highest level in 10 months.

    The jobless-claims data “points to a loosening in the labor market, which is welcome news for the Fed,” said Larry Adam, chief investment officer at Raymond James, in a tweet.

    However, analysts at Citi still think the claims data indicates a still-very-tight labor markets compared to historical levels.

    “While both initial and continuing claims increased this week, they remain within the levels of late 2019,” wrote Gisela Hoxha, U.S. economics research analyst at Citi. “Anecdotes of company layoffs have increased in recent months, particularly in the tech sector. While it could be hard to disentangle the seasonal effects from the announced layoffs, in our view there is no significant evidence of them showing up in the claims data yet.”

    Some of those layoffs could be taking effect a couple months later as employees might be kept on payroll for some time after the announcement, which will become significant signs of weakness in the labor market in 2023, Hoxha added.

    See: Did 2022 break Wall Street’s ‘fear gauge’? Why the VIX no longer reflects the sorry state of the stock market

    Stocks were on track to finish what’s set to be the worst year since 2008 not far from 2022 lows. The S&P 500’s 52-week closing low at 3,577.03 was hit on Oct. 12.

    Still, the three indexes managed to erase losses from earlier in the week on Thursday. Nasdaq Composite was down 0.2% this week, while the S&P 500 gained 0.1% and the Dow was nearly flat as of Thursday’s close. If the S&P 500 can hold on to weekly gains through Friday, it would mark the end of a three-week losing streak that has been the index’s longest since September, FactSet data show.

    Companies in focus
    • Tesla Inc.
      TSLA,
      +8.08%

      shares finished 8.1% higher on Thursday after posting its first rise in eight sessions Wednesday. The electric-vehicle maker’s shares had declined in seven consecutive sessions, their worst losing streak since a seven-session run that ended on Sept. 15, 2018.

    • Southwest Airlines 
      LUV,
      +3.70%

      remains in focus as the airline tries to recover from logistical issues that caused thousands of flight cancellations over the past week. The stock fell 11% over the past two days, but rose 3.7% in Thursday session.

    • General Electric’s 
      GE,
      +2.17%

      spinoff of GE HealthCare Technologies will join the S&P 500 index when it begins trading as a separate public company on Jan. 4. GE HealthCare will replace Vornado Realty Trust 
      VNO,
      +1.63%
      ,
      which will move to the S&P MidCap 400. Vornado will replace logistics company RXO
      RXO,
      +8.39%
      ,
      which will move to the S&P SmallCap 600. GE HealthCare — trading on a when-issued basis — rose 0.9%, while Vornado gained 1.6% and RXO jumped 8.4%.

    • Cal-Maine 
      CALM,
      -14.50%

      shares ended 14.5% lower after its quarterly earnings came in below Wall Street forecasts. Cal-Maine reported record sales for the quarter as an avian flu outbreak continued to limit the supply of eggs, driving prices sharply higher. The company also said there were no positive tests for avian flu at any of its production facilities, as of Wednesday.

    — Jamie Chisholm contributed to this article

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  • U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

    U.S. stocks close sharply higher in year-end rally after jobless claims data deemed ‘welcome news for the Fed’

    [ad_1]

    U.S. stock indexes finished sharply higher on Thursday, the second-to-last trading session of the year, with the Nasdaq Composite jumping 2.6%, erasing losses from earlier in the week.

    The three main indexes built on premarket gains after U.S. weekly jobless claims data showed the number of workers receiving benefits has climbed to the highest level since February, a tentative sign that the Federal Reserve’s interest-rate hikes might be slowing economic growth and inflation.

    How stocks traded
    • The S&P 500
      SPX,
      +1.75%

      rose 66.06 points, or 1.8%, to end at 3,849.28.

    • Dow Jones Industrial Average
      DJIA,
      +1.05%

      added 345.09 points, or 1.1%, finishing at 33,220.80.

    • Nasdaq Composite
      COMP,
      +2.59%

      climbed 264.80 points, or 2.6%, to finish at 10,478.09.

    On Wednesday, the Nasdaq Composite dropped 1.4% to 10,213, its lowest closing level of the year. The S&P 500 is up more than 6% from its 2022 low from mid-October, but the large-cap index remains down 19.2% year-to-date, FactSet data show.

    What drove markets

    The penultimate session of 2022 showed tentative signs of delivering some much needed festive cheer for the stock market as a hope for “Santa Claus rally” had earlier failed to materialize.

    MarketWatch Live: Is that you, Santa Claus?

    Stocks advanced on Thursday as data showed the number of Americans receiving more than a single week of unemployment benefits had climbed by 41,000 last week to 1.71 million, the highest level in 10 months.

    The jobless-claims data “points to a loosening in the labor market, which is welcome news for the Fed,” said Larry Adam, chief investment officer at Raymond James, in a tweet.

    However, analysts at Citi still think the claims data indicates a still-very-tight labor markets compared to historical levels.

    “While both initial and continuing claims increased this week, they remain within the levels of late 2019,” wrote Gisela Hoxha, U.S. economics research analyst at Citi. “Anecdotes of company layoffs have increased in recent months, particularly in the tech sector. While it could be hard to disentangle the seasonal effects from the announced layoffs, in our view there is no significant evidence of them showing up in the claims data yet.”

    Some of those layoffs could be taking effect a couple months later as employees might be kept on payroll for some time after the announcement, which will become significant signs of weakness in the labor market in 2023, Hoxha added.

    See: Did 2022 break Wall Street’s ‘fear gauge’? Why the VIX no longer reflects the sorry state of the stock market

    Stocks were on track to finish what’s set to be the worst year since 2008 not far from 2022 lows. The S&P 500’s 52-week closing low at 3,577.03 was hit on Oct. 12.

    Still, the three indexes managed to erase losses from earlier in the week on Thursday. Nasdaq Composite was down 0.2% this week, while the S&P 500 gained 0.1% and the Dow was nearly flat as of Thursday’s close. If the S&P 500 can hold on to weekly gains through Friday, it would mark the end of a three-week losing streak that has been the index’s longest since September, FactSet data show.

    Companies in focus
    • Tesla Inc.
      TSLA,
      +8.08%

      shares finished 8.1% higher on Thursday after posting its first rise in eight sessions Wednesday. The electric-vehicle maker’s shares had declined in seven consecutive sessions, their worst losing streak since a seven-session run that ended on Sept. 15, 2018.

    • Southwest Airlines 
      LUV,
      +3.70%

      remains in focus as the airline tries to recover from logistical issues that caused thousands of flight cancellations over the past week. The stock fell 11% over the past two days, but rose 3.7% in Thursday session.

    • General Electric’s 
      GE,
      +2.17%

      spinoff of GE HealthCare Technologies will join the S&P 500 index when it begins trading as a separate public company on Jan. 4. GE HealthCare will replace Vornado Realty Trust 
      VNO,
      +1.63%
      ,
      which will move to the S&P MidCap 400. Vornado will replace logistics company RXO
      RXO,
      +8.39%
      ,
      which will move to the S&P SmallCap 600. GE HealthCare — trading on a when-issued basis — rose 0.9%, while Vornado gained 1.6% and RXO jumped 8.4%.

    • Cal-Maine 
      CALM,
      -14.50%

      shares ended 14.5% lower after its quarterly earnings came in below Wall Street forecasts. Cal-Maine reported record sales for the quarter as an avian flu outbreak continued to limit the supply of eggs, driving prices sharply higher. The company also said there were no positive tests for avian flu at any of its production facilities, as of Wednesday.

    — Jamie Chisholm contributed to this article

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  • Corcoran Reverie Welcomes Destin Legend Cindy Cole to Champion New Destin Location

    Corcoran Reverie Welcomes Destin Legend Cindy Cole to Champion New Destin Location

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    Top-ranked team leader Cindy Cole, formerly of Keller Williams, partners with Corcoran Reverie.

    Press Release


    Dec 29, 2022

    Corcoran Reverie, a high-end real estate brokerage and an affiliate of Corcoran Group LLC, proudly announces their new partnership with leading luxury agent Cindy Cole as they continue their focus on the growth of the Destin division of Corcoran Reverie. Named one of America’s Best Real Estate Agents by RealTrends each year since the award’s inception in 2012, Cindy Cole ranks among the top ½ of 1% of the country’s Realtors in overall sales volume. Regionally, Cindy has been ranked the top Keller Williams agent in the five Gulf States.

    “Since the launch of Destin in 2021, we have been focused on the growth of our brand and our agents in all the locations we service; the partnership with Cindy will take Destin to the next phase of our plan for that area,” says Owner & Real Estate Advisor, Jacob Watkins. 

    “Hillary and I have discussed doing something together for years but never found the right time or brand match,” says Cindy Cole. “When I started to study the Corcoran brand nationally, I knew that Hillary and Jacob had something I wanted to be involved in. Hillary’s energy is contagious, and her customer commitment is unwavering. Jacob is a solid visionary and financial leader. With my career focus on marketing, I believe our collaboration to be unmatched in our local market.”

    Prior to selling luxury real estate on the Emerald Coast, Cindy enjoyed more than a decade as a top-producing sales executive in the outdoor advertising industry in Atlanta, developing innovative advertising mediums for major corporations, commercial and residential developers, and major league sports teams. Cindy discovered her talent for sales and marketing as a journalism student at the University of Georgia. Considered a thought leader within the local real estate market, Cindy has contributed her insights to View Magazine and is frequently quoted by The Wall Street Journal. When not selling real estate, Cindy enjoys traveling, leading women’s groups, writing, fundraising, or entertaining. Annually, Cindy Cole Fine Homes hosts several wine-tasting and dinner events for clients. Cindy Cole Fine Homes supports Emerald Coast Children’s Advocacy Center, Alaqua Animal Refuge, Althea’s Legacy, as well as several national charities.

    In her new role with Corcoran Reverie, Cole’s main career focus will continue to be assisting her clients in buying and selling real estate while taking this opportunity to establish a full-service Corcoran Reverie office in the Destin & Miramar Beach area as well as help lead a group of agents on their own thriving careers.

    “My time at Keller Williams has been successful, and I’m grateful for the freedom and opportunity to build my own autonomous brand within that organization,” Cole continues to explain. “Now, I’m thrilled to work with the Corcoran Reverie premier brand abundant with support staff, resources, and commitment to excellence in selling luxury real estate.” 

    “It’s another exciting and impactful partnership for our Destin office, and we couldn’t be more thrilled!” says Owner & Broker Hilary Farnum-Fasth. “By partnering with Cindy and her connectivity in that market. This will allow the company to rapidly expand and thrive within the Destin market,” Farum-Fasth continues, “This opportunity will also allow us to bring on new like-minded agents to join us and showcase the unique culture that makes Corcoran Reverie such an incredible brokerage to work at.”

    ###

    About Corcoran Reverie

    Corcoran Reverie, an affiliate of Corcoran Group LLC – a leading residential real estate brokerage firm headquartered in New York City – is a locally owned high-end brokerage specializing in the luxury home market in the greater Nashville area and across Northwest Florida from Destin to Panama City and the coastal communities along 30A. With a 220+ agent team lead by broker and owner Hilary Farnum-Fasth and partner Jacob Watkins and offices in 30A, Destin, Panama City, and Nashville, Corcoran Reverie was ranked #1 office ranking in Northwest Florida based on closed office sales volume of over $750 million in its first year as a Corcoran affiliate, and $1.12 billion in 2021. Throughout the entire network, Corcoran is home to more than 160 offices and more than 5,700 agents in key urban, suburban, and resort markets nationwide. For more information on Corcoran Reverie, visit corcoranreverie.com.

    Source: Corcoran Reverie

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  • Is Real Estate Investment Trusts a Good Career Path in 2023?

    Is Real Estate Investment Trusts a Good Career Path in 2023?

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    Getting into real estate is often considered to be a lucrative career path. But you don’t have to buy and sell properties to join this industry as a professional. You can enter a real estate investment trust (REIT) company or become a REIT investor.

    Keep reading for the info you need to consider to decide if real estate investment trusts are good career paths for professionals like you.

    Real estate investment trusts explained

    A real estate investment trust or REIT is a group of funds or securities for real estate. REIT management companies oversee real estate acquisitions, sales and diversification.

    Think of a REIT similarly to a mutual or exchange-traded fund (ETF). With a mutual fund, several stocks or securities are gathered together into a group. Investors can then purchase mutual fund shares rather than individual shares in the fund itself.

    Similarly, with a real estate investment trust, investors can purchase partial ownership or shares of the trust, thus gaining the financial benefits of simultaneously investing in multiple pieces of real estate or other securities.

    Through REITs, investors can invest in portions of real estate projects or properties and generate profits. Most real estate investment trusts are collections of properties such as hospitals, shopping malls, apartments and other large properties rather than single-family homes, though this is only sometimes true.

    Related: The Most Stable REIT to Buy for a Recession

    Real estate investment trusts are often attractive to investors because they don’t require those investors to finance, purchase or manage any properties by themselves. Instead, REIT companies and their employees handle all the details.

    What does a REIT company do?

    A REIT company acquires real estate properties and securities for its clients. It monitors the market, sells properties when necessary and continues to grow the collected trust and portfolios under its control for the financial prosperity of its clients.

    A REIT company is similar to a mutual fund manager. They take care of the day-to-day monitoring of properties of investments for their clients, plus give out dividends to those clients every month.

    REITs in more detail

    Only some companies that invest in real estate qualify as REITs.

    For a company to be a legitimate REIT, it must:

    • Invest 75% or more of its total assets in real estate and U.S. treasuries for cash.
    • Derive 75% or more of its gross income from interest on mortgages, real estate sales or rent payments.
    • Pay at least 90%of its taxable income as shareholder dividends each fiscal year.
    • Be a taxable corporation.
    • Be managed by a board of trustees or directors.
    • Have at least 100 shareholders or more after the first year of operations.
    • Have no more than 50% of its shares owned by five or fewer people.

    Related: 3 REITs That Could Be the Backbone of Your Portfolio

    Do REITs pay investors dividends?

    Yes, which is part of what makes them so desirable for investors. Both residential and diversified REITs pay monthly dividends to their shareholders and investors. This monthly income comes from rent and mortgage payments from the people who own the properties in the REIT.

    Most REITs have an average rate of return of about 10.5%, similar to the rental rate of return landlords can expect in their first years of operation. Unlike landlords, however, REIT investors don’t need to spend much time and money maintaining or managing properties.

    Note that REIT managers or companies collect a small commission from accrued mortgage and rent payments as the cost of their services. This is what pays the workers of real estate investment trusts, their managers and other professionals.

    So, should you get involved with real estate investment trusts?

    That depends on your career ambitions and prospects. REIT management is a complex and even potentially risky field for many.

    If you get into REIT, you’ll often need to start at the bottom and work your way to the top, so your salary may not be exceptional in the first years of your career. However, the potential rewards of sticking with this career for several years could be pretty enticing.

    You should consider getting into real estate investment trusts as a career path if:

    • You are already interested in investing in real estate. Joining a REIT company could be the best way to learn about this unique investment field and how best to operate within it.
    • You are interested in acquiring real estate and learning more about the real estate market.
    • You have strong management skills.
    • You are comfortable with a certain level of risk — not for yourself, of course, but for your clients.

    What will you do in a REIT company?

    That depends on your exact job title and responsibilities.

    For most in the REIT industry, career paths begin by obtaining a position at a REIT company’s headquarters. You may start with essential maintenance or secretarial work, but gradually learn more about how a REIT company chooses its assets, communicates with its clients, and advertises its services to acquire new clients.

    Real estate investment trusts career paths

    There are multiple potential career paths you can pursue in any REIT industry. Here are just a few examples.

    Related: The Best Careers for Your Personality Type (Infographic)

    Property manager

    You might work as a property manager. Many REIT companies work with third-party property management companies. In a nutshell, property managers maintain rental properties, like apartment complexes or multiple homes throughout the same neighborhood.

    If you work for a property management company, you might eventually be able to work for a REIT. Alternatively, if you work for a REIT, you might work as a property manager for that trust. In this case, the trust takes care of various rental properties, which it maintains and oversees on behalf of its clients.

    Asset manager

    You could also pursue a career as an asset manager. REIT asset managers decide which properties they should purchase and how much debt they need to take out in terms of loans or other financing arrangements to purchase those properties.

    Asset managers also oversee all the aspects of owning and operating properties and ensure property expenses align with projections. This mid-level management job requires a lot of experience in real estate, investing and similar areas.

    Development executive

    Development executives are chief executives for these funds. Thus, they have a lot of sway regarding what properties the REIT purchases, its profit and debt targets, and how the fund evolves.

    Development executives identify opportunities to purchase new properties for the fund’s clients to improve financial prosperity for everyone involved.

    This position pays well and is an excellent stepping stone to senior management positions in other real estate investment industry companies. However, expect to acquire lots of experience in the REIT arena before qualifying for this position.

    Acquisition analyst

    Acquisition analysts are closer to the entry-level or middle manager position than development executives. That said, they are critical.

    REIT acquisition analysts plan, implement, coordinate and identify properties that the fund they work for should acquire. For instance, they may find an attractive apartment complex that needs new investors, then recommend that the REIT company purchase it to diversify the portfolio further.

    Related: 3 REITs to Buy and Hold for the Long Term

    Because of this, acquisition analysts need skills and experience in the real estate investment industry. They need to know how to recognize and understand market trends, spot available properties and know what properties are worth.

    It is also beneficial to have contacts in the real estate or investment industries before applying for these positions in a REIT. For instance, if you are friends with local realtors, you can get an early scoop about up-and-coming properties or new listings from your friends, allowing you to recommend properties to your REIT company or more quickly than other analysts.

    Summary

    Ultimately, you might enjoy working for a REIT company if you like investing, real estate, analysis and similar topics. If you’re successful in this field, you’ll also make a pretty fair salary.

    Check out Entrepreneur’s other resources and guides today to learn more about real estate, investments, and related topics.

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    Entrepreneur Staff

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  • Housing Market Continues To Slide – Sales Down 4% In November

    Housing Market Continues To Slide – Sales Down 4% In November

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    Key Takeaways

    • Existing home signed sales contracts went down 4% in November, extending the slide to ten months straight.
    • It’s further evidence of a continued slowdown in the housing sector, with prices down 9.1% since May.
    • It’s an expected side effect of the Fed’s policy of raising interest rates to bring down inflation, with the average 30 year fixed rate mortgage doubling over the past year.

    The housing market in the US has had a rough few months. According to the National Association of Realtors, contracts to buy previously owned homes in the US fell a lot more than expected in November – the sixth straight month of decline.

    The main reason behind the fall is due to the Federal Reserve raising interest rates in an attempt to curb inflation, which is causing the housing market to almost grind to a halt.

    The NAR’s Pending Home Sales Index, which is based on signed contracts, showed that the number of contracts fell by 4% to 73.9 in November. To put that in perspective, contracts are down 37.8% compared to the same time the previous year. Ouch.

    Download Q.ai today for access to AI-powered investment strategies.

    Why is the housing market slowing down?

    But why is this happening? Well, the housing market is particularly sensitive to changes in interest rates, and the Fed’s aggressive rate hikes have caused borrowing costs to increase significantly. In fact, the 30-year fixed mortgage rate reached 7% in October for the first time since 2002, more than doubling in just nine months.

    New mortgages are now a heck of a lot more expensive than they were a year ago, and it’s making potential buyers wary of diving in on such a major purchase.

    This sudden increase in borrowing costs has essentially pulled the rug out from under what had been a red-hot housing market, which was fueled by historically low borrowing costs and a rush to the suburbs during the coronavirus pandemic.

    The decline in signed contracts means that existing home sales are also certain to fall after notching their 10th straight monthly decrease in November. According to data from the previous week, the annual sales rates of both new and existing homes have decreased by 35% since the beginning of the year, reaching their lowest point since 2011. This represents one of the quickest declines on record.

    And to make matters worse, new single-family housing starts and permit issuance reached a two-and-a-half-year low last month as well.

    So, it looks like the housing market is feeling the effects of the Fed’s actions in real-time, and it’s not looking good. NAR Chief Economist Lawrence Yun summed it up by saying, “falling home sales and construction have hurt broader economic activity.”

    Where to from here for the housing market?

    There’s no getting away from it, the situation is probably going to get worse before it gets better. The Fed has made it clear that they plan to hike rates as much as they need to in order to get inflation back down to the target range of 2-3%.

    It has started to come to head back down, but it’s still staggeringly high at 7.1%.

    That means we can expect rates to go up further from here, and potentially by quite a lot. For potential homebuyers, mortgages are therefore going to continue to get more expensive. That’s going to mean fewer buyers on the market for homes, which is going to further put the brakes on real estate activity.

    And that’s the whole point.

    Anyone who expects the housing market to pick up soon will find themselves face to face with the Fed, who are determined to take the heat out and bring down inflation.

    After every Federal Open Market Committee meeting, where the members of the Fed agree on where to set the rates, individual members are surveyed on where they see rates 12 months from now.

    This is known as the ‘dot plot’ due to the way the data is represented, and the current dot plot shows the median expectation for rates is that they hit 5.1% by the end of next year. That’s still a significant increase from the current level of 4.25 – 4.5%.

    What does that mean for potential home buyers?

    If you’ve been looking to get on the housing ladder, this change in interest rate policy is likely to have thrown you for a bit of a loop. The houses you’ve been eyeing up probably haven’t come down in price, but the mortgage you’d need to buy it definitely has.

    The ongoing pressure on the housing market is likely to cause prices to moderate in the short to medium term. We’ve already seen this start to happen. According to Redfin, the median sale price in May in the US hit $433,425. In May, that’s slid to $393,682.

    If interest rate continue to go up as they’re expected to, and home sale numbers also continue to fall, it’s highly likely that prices will keep going down too.

    That’s going to take some of the sting out of the rising cost of a mortgage. You’ll still be paying a higher level of interest than you would have been 12 months ago, but if the price of the home you’re buying going down too, then the mortgage might not be as big.

    Either way, one of the best ways to help insulate yourself against these sorts of changes is to have a bigger down payment.

    The bigger the down payment, the more mortgages that will likely be available to you and the lower your ongoing repayments can be. For those looking to boost the size of their down payment, there are a couple of options you can consider.

    Obviously you could try to save more of your income. That’s easier said than done in the era of sky high cost of living. The other alternative is to look to the investment markets in an aim to grow your down payment that way.

    Wading into markets right now can be a challenge. It could be a great time to get in, with the major falls we’ve seen, but they could also have further to fall. If you’re nervous, consider adding our AI-powered Portfolio Protection.

    This uses AI to analyze your portfolio’s sensitivity to a range of different risk factors such as interest rate risk, overall market risk and oil risk. It then automatically implements sophisticated hedging strategies to help guard against them.

    It’s the type of strategy usually reserved for high flying hedge fund clients, but we’ve made it available for everyone. You can add Portfolio Protection to any of our Foundation Kits.

    Download Q.ai today for access to AI-powered investment strategies.

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    Q.ai – Powering a Personal Wealth Movement, Contributor

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  • Housing market in the throws of a winter freeze, says Realtor.com Sr. Economist George Ratiu

    Housing market in the throws of a winter freeze, says Realtor.com Sr. Economist George Ratiu

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    George Ratiu, Realtor.com senior economist, joins ‘Power Lunch’ to discuss the state of the housing market, how future rate hikes could impact home buying and how the housing market could look in two years.

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  • Global Getaways: Mauritius – Sotheby´s International Realty | Blog

    Global Getaways: Mauritius – Sotheby´s International Realty | Blog

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    Mauritius Sotheby’s International Realty 

    Take a look at a destination with a thriving luxury rental market and hear directly from Timo Geldenhuys of Mauritius Sotheby’s International Realty, about why this popular destination for tourists may be the destination for your next rental investment.

    Mauritius Sotheby’s International Realty 

    Sotheby’s International Realty (SIR): What sets rental properties in your country apart from the rest of the world?

    Timo Geldenhuys, Mauritius Sotheby’s International Realty (TG): Being an open economy with an international financial center, Mauritius attracts not only property investors and retirees but also professional expats. Our up-market rental products are easily rented to expat communities, as if there are a few restrictions on foreign property ownership, foreigners can rent a property anywhere around the island, including beachfront properties or golf properties.

    Mauritius Sotheby’s International Realty 

    SIR: What trends are you seeing in your rental market?

    TG: The rental market is booming at the moment. As we have a massive shortage of stock, the demand far exceeds the supply for high-end market rentals. As a result, rental prices have gone up considerably.

    It is to be noted that the Premium Visa launched by the Mauritian government in November 2020, generated 3640 applications, with 27% of French, 15% South Africans, and 8% British, followed by Russians, Indians, Germans, and Americans. So, in Mauritius, you have the option of renting on a short-term or on a long-term basis, and Mauritius Sotheby’s International Realty stands ready to advise on any query.

    SIR: How does the rental market drive business for your company?

    TG: Due to Mauritius being a remote destination, many people decide to rent first before acquiring property, to test-drive the Mauritian destination. On our side, by fostering a good relationship with our rental clients, eventually when they decide to buy they come to us directly. So there is the rental business, but rentals also offer sales opportunities.


    Mauritius Sotheby’s International Realty

    SIR: Any interesting or success stories about rental homes we can share? 

    ANG: In Mauritius, the average monthly rental price can go up to around EUR€4 400, and we recently closed a rental deal of EUR€10 000 monthly. Proof, if need be, that our top-notch properties, for rentals or sales, attract the HNWI around the world.

    Discover luxury rental properties in the Principality of Andorra

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    Melissa Couch

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  • These 20 energy stocks are worth a look if you think oil prices will soar in 2023

    These 20 energy stocks are worth a look if you think oil prices will soar in 2023

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    Harris Kupperman, the president of Praetorian Capital, made a couple of interesting calls heading into 2022. He predicted that stocks of the giant tech-oriented companies that led the bull market would be sold off, and that oil prices would continue to rise through the end of 2022.

    The first prediction came true, while the second one for oil prices fizzled. After rising to $130 in March, oil prices have fallen back to where they started the year. Then again, that second prediction still could have made you a lot of money because the share prices of oil companies kept rising anyway.

    That leads to a new prediction for 2023 and a related stock screen below.

    Here’s a chart showing the movement of front-month contract prices for West Texas Intermediate (WTI) crude oil
    CL.1,
    -0.62%

    since the end of 2021:


    FactSet

    Even though Kupperman didn’t get his oil price call right, the energy sector of the S&P 500
    SPX,
    -1.20%

    was up 60% for 2022 through Dec. 27, excluding dividends. That is the only one of the 11 S&P 500 sectors to show a gain in 2022. And the energy sector is also cheapest relative to earnings expectations, with a forward price-to-earnings ratio of 9.8, compared with 16.7 for the full S&P 500.

    WTI pulled back from its momentary peak at $130.50 in early March, but that didn’t reverse the long-term trend of low capital spending by oil and natural gas producers, which has given investors confidence that supplies will remain tight.

    Vicki Hollub, the CEO of Occidental Petroleum Corp.
    OXY,
    -3.50%

    the best-performing S&P 500 stock of 2022 — said during a recent interview that there was “no pressure to increase production right now,” citing a $40 per barrel break-even point for oil prices.

    Kupperman now expects strong demand and low supplies to push oil as high as $200 a barrel in 2023.

    At the end of November, these 20 oil companies stood out as reasonable plays for 2023 based on expectations for free-cash-flow generation and dividend payments.

    For this next screen, we are only looking at ratings and consensus price targets among analysts polled by FactSet.

    There are 23 energy stocks in the S&P 500, and you can invest in that group easily by purchasing shares of the Energy Select SPDR ETF
    XLE,
    -2.24%
    .
    We can expand the list of large-cap names by looking at the components of the iShares Global Energy ETF
    IXC,
    -1.91%
    ,
    which holds all the energy stocks in the S&P 500 plus large players based outside the U.S.

    The top five holdings of IXC are:

    Company

    Ticker

    Country

    % of portfolio

    Share “buy” ratings

    Dec. 27 price

    Price target

    Implied 12-month upside potential

    Exxon Mobil Corp.

    XOM,
    -1.64%
    U.S.

    16.4%

    54%

    110.19

    118.89

    7.89%

    Chevron Corp.

    CVX,
    -1.48%
    U.S.

    11.5%

    54%

    179.63

    190.52

    6.06%

    Shell PLC

    SHEL,
    -0.70%
    U.K.

    7.8%

    83%

    23.67

    29.82

    25.99%

    TotalEnergies SE

    TTE,
    -1.40%
    France

    5.6%

    62%

    59.63

    64.40

    8.00%

    ConocoPhillips

    COP,
    -2.67%
    U.K.

    5.4%

    83%

    118.47

    140.84

    18.88%

    Source: FactSet

    Prices on the tables in this article are in local currencies.

    IXC holds 51 stocks. To expand the list for a stock screen, we added the energy stocks in the S&P 400 Mid Cap Index
    MID,
    -1.24%

    and the S&P Small Cap 600 Index
    SML,
    -1.89%

    to bring the list up to 91 companies, which we then pared to 83 covered by at least five analysts polled by FactSet.

    Here are the 20 companies in the list with at least 75% “buy” or equivalent ratings that have the most upside potential over the next 12 months, based on consensus price targets:

    Company

    Ticker

    Country

    Share “buy” ratings

    Dec. 27 price

    Price target

    Implied 12-month upside potential

    EQT Corp.

    EQT,
    -7.82%
    U.S.

    83%

    36.34

    59.14

    63%

    Green Plains Inc.

    GPRE,
    -2.72%
    U.S.

    80%

    29.80

    43.40

    46%

    Cameco Corp.

    CCO,
    +0.33%
    Canada

    100%

    30.48

    44.25

    45%

    Talos Energy Inc.

    TALO,
    -8.40%
    U.S.

    86%

    19.77

    28.67

    45%

    Ranger Oil Corp. Class A

    ROCC,
    -6.22%
    U.S.

    100%

    41.33

    58.00

    40%

    Tourmaline Oil Corp.

    TOU,
    -4.92%
    Canada

    100%

    71.40

    98.83

    38%

    Civitas Resources Inc.

    CIVI,
    -4.06%
    U.S.

    100%

    58.82

    80.83

    37%

    Inpex Corp.

    1605,
    -2.08%
    Japan

    88%

    1,477.00

    1,965.56

    33%

    Diamondback Energy Inc.

    FANG,
    -2.26%
    U.S.

    84%

    137.58

    181.90

    32%

    Santos Limited

    STO,
    -3.12%
    Australia

    100%

    7.20

    9.26

    29%

    Matador Resources Co.

    MTDR,
    -3.98%
    U.S.

    79%

    57.59

    73.75

    28%

    Targa Resources Corp.

    TRGP,
    -2.63%
    U.S.

    95%

    73.89

    94.05

    27%

    Cenovus Energy Inc.

    CVE,
    -2.55%
    Canada

    84%

    26.24

    33.22

    27%

    Shell PLC

    SHEL,
    -0.70%
    U.K.

    83%

    23.67

    29.82

    26%

    Ampol Limited

    ALD,
    -2.89%
    Australia

    85%

    28.29

    35.01

    24%

    EOG Resources Inc.

    EOG,
    -3.54%
    U.S.

    79%

    132.08

    157.52

    19%

    ConocoPhillips

    COP,
    -2.67%
    U.S.

    83%

    118.47

    140.84

    19%

    Repsol SA

    REP,
    -0.66%
    Spain

    75%

    15.05

    17.88

    19%

    Halliburton Co.

    HAL,
    -3.03%
    U.S.

    86%

    39.27

    45.95

    17%

    Marathon Petroleum Corp.

    MPC,
    -1.97%
    U.S.

    76%

    116.82

    132.56

    13%

    Source: FactSet

    Click on the tickers for more information about the companies.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

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  • U.S. pending home sales fall 4% in November to the lowest level since April 2020

    U.S. pending home sales fall 4% in November to the lowest level since April 2020

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    The numbers: U.S. pending-home sales fell 4% in November, which is the sixth straight monthly drop, according to the index released Wednesday by the National Association of Realtors (NAR).

    The index was last at this level in the midst of the pandemic lockdown, in April 2020.

    Analysts polled by the Wall Street Journal had forecast the pending home sales index to drop by 1.8%.

    Contract signings fell in all regions across the country.

    Pending home sales reflect transactions where the contract has been signed for an existing-home sale, but the sale has not yet closed. 

    Economists view it as an indicator for the direction of existing-home sales in subsequent months.

    Key details: Compared with a year earlier, transactions were down by 37.8%.

    On a monthly basis, pending sales fell in all four major U.S. regions, led by the Northeast, where the index fell by 7.9%, followed by the Midwest, the South and the West.

    But pending home sales fell the most since last November in the West, by 45.7%.

    Pending home sales have fallen in all but one month in 2022. 

    Big picture: The housing market continues to stumble through 2022, as elevated mortgage rates keep buyers out of the market.

    Buyers are finding it hard to find an existing home for sale, as sellers hold on to their homes tied to ultra-low mortgage rates.

    November’s data is also tied to the period of time when mortgage rates were above 7%.

    What the realtors said: “With mortgage rates falling throughout December, home-buying activity should inevitably rebound in the coming months and help economic growth,” NAR Chief Economist Lawrence Yun said. 

    What they’re saying: “Housing markets have entered a winter freeze,” George Ratiu, senior economist at Realtor.com, said in a statement. 

    “With prices for existing homes still elevated … and mortgage rates above 6%, homebuyers are finding much of today’s real estate landscape inaccessible,” he added.

    Ratiu estimated that monthly mortgage payment for a median-priced home has gone up by $780 since last year.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    -1.10%

    and the S&P 500
    SPX,
    -1.20%

    were mixed in early trading on Wednesday. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.872%

    rose above 3.8%.

    (Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, also a subsidiary of News Corp.)

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  • Here are MarketWatch’s most popular Moneyist advice columns of 2022

    Here are MarketWatch’s most popular Moneyist advice columns of 2022

    [ad_1]

    What fresh shenanigans and money dilemmas enthralled readers in 2022?

    Another year of broken promises, dodgy dealings and moving letters about how to get back on one’s feet after divorce, unemployment and even a 15-year abusive relationship

    The most widely-read Moneyist of 2022, however, was actually one of the shortest letters from someone called ‘Surprised Sister.” The answer, as is often the case, was not so simple, nor so short.

    Here is the No. 1 Moneyist column of the year: We are surprised and bewildered’: My brother passed away and left his house, cash and possessions to charity. Can his siblings contest his will?

    My response: There are times to contest a will: a parent who was being controlled by a new friend or greedy child, and/or someone who was forced to change their will when they were not of sound mind.

    But her own legal advice notwithstanding, I suggested she should accept your brother’s wishes. Feeling aggrieved that she did not inherit his estate is not enough to break his will. 

    Separate the emotions from the finance, and the answer often reveals itself. But there were others that ran the gamut from romance to stocks. They other most-read columns are an eclectic bunch:

    Here are the 5 runner-ups:

    1. I had a date with a great guy. I didn’t drink, but his wine added $36 to our bill. We split the check evenly. Should I have spoken up?

    It would be nice to offer to take the booze off the check, you were a non-drinker, would you speak up at one drink or two or three, if your date split the entire bill 50/50? 

    The financial intricacies of dating are like an onion that can be peeled ad infinitum. We’ve had plenty to chew over. Paying for one of your date’s drinks is OK, paying for two is pushing it.

    1. My father offered his 3 kids equal monetary gifts. My siblings took cash. I took stock. It’s soared in value — now they’re crying foul

    “The Other Brother” wrote that his father offered three children a choice: stocks or cash. The other two siblings took the cash. He took the cash. The stock soared. Dems are the breaks.

    Her siblings could have chosen stocks over cash, but they wanted immediate gratification. That was their decision, and they are going to have to take ownership of their choice and live with it.

    1. I’m an unmarried stay-at-home mother in a 20-year relationship, but my boyfriend won’t put my name on the deed of our house. Am I unreasonable?

    They have been in a 20-year relationship and have a 10-year-old child. “Not on the Deed” said she and her partner have had several tense “discussions” about adding me to the deed.

    I told her that her contribution to your partnership is valuable, her sense of worth is valuable, and her role as a homemaker and a mother is also valuable. Yes, he should add her.

    1. My friend got us free theater tickets. When I got home, she texted me, ‘Can you get our next meal or activity?’ Am I obliged to treat her?

    Even amidst the fights over inheritances, some breaches of social and financial etiquette seem so bizarre some people might think, ‘That behavior is too outrageous to be believable.” 

    The letter writer received free theater tickets, they split the bill 50/50 even though her friend had a cocktail, and she paid $10 for parking. Is he obliged to take her out again? No-can-do.

    1. My date chose an exclusive L.A. restaurant. After dinner, he accepted my credit card — and we split a $600 bill. Shouldn’t he have paid?

    Another dating story, this time where the guy chose a fancy restaurant and, as the date wore on, things took a turn for the worst, at least in the letter writer’s eyes: She was asked to split the bill.

    What if they didn’t get along? What if he was an abortion-rights supporter and she was anti-abortion? What if he was a Republican and she was a Democrat? Or vice-versa?  Always be prepared to pay.

    Follow Quentin Fottrell on Twitter.

    You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com.

    Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

    The Moneyist regrets he cannot reply to questions individually.

    More from Quentin Fottrell:

    ‘I’m left with a $100 Bûche de Noël for 10 people — and no place to go’: My friends canceled Christmas dinner. Should I end the 30-year friendship?

    I met my wife in 2019 and we married in 2020. I put her name on the deed of my $998,000 California home. Now I want a divorce. What can I do?

    I want to meet someone rich. Is that so wrong?’ I’m 46, earn $210,000, and own a $700,000 home. I’m tired of dating ‘losers.’

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  • Trajectory for foreclosures will be on the rise next year, says Black Knight’s Andy Walden

    Trajectory for foreclosures will be on the rise next year, says Black Knight’s Andy Walden

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    Share

    Andy Walden, Black Knight VP of enterprise research, joins ‘The Exchange’ to discuss the health of the housing market and headwinds the sector still faces.

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  • Inside a Sophisticated Manhattan Loft – Sotheby´s International Realty | Blog

    Inside a Sophisticated Manhattan Loft – Sotheby´s International Realty | Blog

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    Remnants of classic street cobblestones and a striking redbrick façade hint at the provenance of the building that houses this sophisticated three-bedroom loft in SoHo. Designed by prominent young architect Jarvis Morgan Slade, the 1883 cast-iron building was renovated by Lawrence B. Bogdanow in the 1990s and joined with a neighboring building to create a complex of contemporary condominiums sharing a tranquil courtyard.

    New York, New York | Mark Mistovich, Daniela Sassoun, Sotheby’s International Realty – East Side Manhattan Brokerage

    Although vestiges of 19th-century style remain—in stately columns, for example—the light-flooded residence is undeniably modern and chic. The voluminous open-plan living area, with soaring 12-foot ceilings and ample space for large-scale dining and entertaining, is anchored by an eye-catching gas fireplace with an extended hearth that creates warm built-in seating beside a wall ideal for displaying art. Oversized windows make the most of the home’s multiple exposures, while glass doors admit floods of morning light and open to Juliet balconies overlooking the courtyard. Nearby are a powder room and a discreet bar area with a custom-designed retractable cart. The adjoining chef’s kitchen, which includes space for informal dining, features appliances from Wolf, Miele, and Sub-Zero and a butler’s pantry with a wine chiller and an auxiliary dishwasher.

    For quieter, more-intimate moments, the library or media room welcomes with its relaxing ambience, built-in bookshelves, and French doors giving way to a Juliet balcony. Tucked in the quiet southwestern corner behind a wall of steel-framed glass is an office with windows facing Wooster Street, an extensive built-in desk, and streamlined storage. Secluded on the home’s southeast corner, the spacious owner’s bedroom is accompanied by an elegant marble bath with heated floors and both a roomy steamshower and a soaking tub. The two guest bedrooms benefit from en suite baths and thoughtful closet space.

    A keypad-controlled elevator connects the building’s lobby directly with an inviting foyer. Residents enjoy central air conditioning, amenities and services that include a full-time superintendent, and the knowledge that their home helps maintain a portion of the history of one of the greatest cities in the world.

    Discover luxury homes for sale and rent around the world on sothebysrealty.com

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    Melissa Couch

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  • Whitmer abduction plot co-leader sentenced to 16 years in federal prison

    Whitmer abduction plot co-leader sentenced to 16 years in federal prison

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    GRAND RAPIDS, Mich. (AP) — The co-leader of a plot to kidnap Michigan Gov. Gretchen Whitmer was sentenced Wednesday to 16 years in prison for conspiring to abduct the Democrat and blow up a bridge to ease an escape.

    Adam Fox returned to federal court Tuesday, four months after he and Barry Croft Jr. were convicted of conspiracy charges at a second trial in Grand Rapids, Mich.

    They were accused of being at the helm of a wild plot to whip up anti-government extremists just before the 2020 presidential election. Their arrest, as well as the capture of 12 others, was a stunning coda to a tumultuous year of racial strife and political turmoil in the U.S.

    The government had pushed for a life sentence, saying Croft offered bomb-making skills and ideology while Fox was the “driving force urging their recruits to take up arms, kidnap the governor and kill those who stood in their way.”

    But Judge Robert J. Jonker said that while Fox’s sentence was needed as a punishment and deterrent to future similar acts, the government’s request for life in prison is “not necessary to achieve those purposes.”

    See: ‘I love state government’: Michigan’s re-elected Democratic governor throws cold water on talk of national prospects

    “It’s too much. Something less than life gets the job done in this case,” Jonker said, later adding that 16 years in prison “is still in my mind a very long time.”

    In addition to the 16-year prison sentence, Fox will have to serve five years of supervised release.

    Fox and Croft were convicted at a second trial in August, months after a different jury in Grand Rapids couldn’t reach a verdict but acquitted two other men. Croft, a trucker from Bear, Del., will be sentenced Wednesday.

    Fox and Croft in 2020 met with like-minded provocateurs at a summit in Ohio, trained with weapons in Michigan and Wisconsin and took a ride to “put eyes” on Whitmer’s vacation home with night-vision goggles, according to evidence.

    “People need to stop with the misplaced anger and place the anger where it should go, and that’s against our tyrannical … government,” Fox declared that spring, boiling over COVID-19 restrictions and perceived threats to gun ownership.

    Whitmer wasn’t physically harmed. The FBI, which was secretly embedded in the group, broke things up by fall.

    “They had no real plan for what to do with the governor if they actually seized her. Paradoxically, this made them more dangerous, not less,” Assistant U.S. Attorney Nils Kessler said in a court filing ahead of the hearing.

    In 2020, Fox, 39, was living in the basement of a Grand Rapids–area vacuum shop, the site of clandestine meetings with members of a paramilitary group and an undercover FBI agent. His lawyer said he was depressed, anxious and smoking marijuana daily.

    Christopher Gibbons said a life sentence would be extreme.

    Fox was regularly exposed to “inflammatory rhetoric” by FBI informants, especially Army veteran Dan Chappel, who “manipulated not only Fox’s sense of ‘patriotism’ but also his need for friendship, acceptance and male approval,” Gibbons said in a court filing.

    He said prosecutors had exaggerated Fox’s capabilities, saying he was poor and lacked the capability to obtain a bomb and carry out the plan.

    Two men who pleaded guilty to conspiracy and testified against Fox and Croft received substantial breaks: Ty Garbin already is free after a 2½-year prison term, while Kaleb Franks was given a four-year sentence.

    Michigan Gov. Gretchen Whitmer addresses the media after signing a state budget bill in July.


    AP/Carlos Osorio/File

    In state court, three men recently were given lengthy sentences for assisting Fox earlier in the summer of 2020. Five more are awaiting trial in Antrim County, where Whitmer’s vacation home is located.

    When the plot was extinguished, Whitmer, a Democrat, blamed then-President Donald Trump, saying he had given “comfort to those who spread fear and hatred and division.” In August, 19 months after leaving office, Trump said the kidnapping plan was a “fake deal.”

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  • U.S. home prices fall for fourth month in October as high mortgage rates bite

    U.S. home prices fall for fourth month in October as high mortgage rates bite

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    The numbers: The S&P CoreLogic Case-Shiller 20-city house price index fell 0.5% in October, its fourth monthly decline. 

    Year-over-year prices rose rose 8.6%, slowing from 10.4% in the previous month.

    A broader measure of home prices, the national index, fell a seasonally adjusted 0.3% in October from September.

    A separate report from the Federal Housing Finance Agency showed home prices remaining flat in October, down from a 0.1% gain the prior month. 

    And over the last year, the FHFA index was up 9.8%.

    Key details: Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in October. All 20 cities reported lower price increases.

    San Francisco and Seattle reported the lowest year-over-year gains, which have seen prices fall by more than 10% from a peak in May.

    Big picture: Housing is in a slowdown, but affordability hasn’t returned. Homes are still expensive, as mortgage rates remain above 6%, and inventory of homes available for sale remains low.

    What S&P said: “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be a headwind for home prices,” Craig J. Lazzara, managing director at S&P DJI, said.

    “Given the continuing prospects for a challenging macroeconomic environment, prices may well continue to weaken,” he added.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    -0.22%

    and the S&P 500
    SPX,
    -0.63%

    were up in early trading on Tuesday. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.807%

    rose above 3.81%.

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  • 6 Overlooked Investment Opportunities in Commercial Real Estate

    6 Overlooked Investment Opportunities in Commercial Real Estate

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    Opinions expressed by Entrepreneur contributors are their own.

    In commercial real estate, smart owners exploit every available opportunity to maximize their net operating income (NOI) and create new, leverageable equity. Over time, small changes can generate millions of dollars in cash flow and added value, which will be critically beneficial as you grow your CRE portfolio.

    Since transacting my first deal at age 18, I’ve built an 18-year track record of success as a professional CRE investor with the help and guidance of mentors who are legends in our business. Here are some of my favorite and most effective insider tips to help boost your numbers.

    Related: Tap Into the Wealth Potential of Commercial Real Estate With These 5 Tips

    1. ATMs

    Nearly every type of property has an area of 24 square feet that can be carved out with minor modifications. If you own property that has any commercial frontage or is located in a heavily trafficked pedestrian area, consider creating space for an ATM.

    In most markets in the U.S., average ATM space will typically lease for $500-$1,400 per month (as of the date of this publication) and requires an area of approximately 4’x6′. That is at least $6,000 in annual income for 24 square feet (or $250 per square foot).

    In areas with heavy pedestrian traffic, an ATM lease could bring $1,200-$1,400 per month, translating to an equity increase of up to $420,000. Talk to your local bank about placing an ATM in your location. Property owners may also choose to install an ATM machine of their own and collect fees on cash withdrawals, but such an operation requires hands-on management.

    2. Vending machines

    While the cash flow may seem negligible, vending machines can add a surprising equity boost to a property’s bottom line. Newer, more automated machines with card readers are more desirable. It’s easier to track income and profit with credit-debit purchases than with cash.

    You can either purchase machines or lease them. Monthly leases can begin at around $50 per month. For most products, profit is around 50%. With two machines, one for snacks and one for soft drinks, you could expect to sell approximately 300 items per month at an average profit of $0.75 per item. That’s a gross income of $225 per month and a net income of $125 per month (minus the $100 lease). While a net annual income of $1,500 seems hardly worth the effort, that’s a potential net equity gain of $20,000 for the property.

    There are many manufacturers that will either sell, finance or lease the equipment. If you choose to purchase or lease, there are reputable vendors offering state-of-the-art machines with favorable terms. Third-party vendors will also lease space in your property and handle all the stocking and maintenance for you.

    Related: How to Start Investing in Rental Properties — Your Step-by-Step Guide

    3. Coin-operated laundry

    In older apartment buildings without washer and dryer connections in each unit, property owners can potentially convert ancillary or otherwise unutilized space in the building (like a basement) into a coin-operated laundry facility.

    During the renovation of an old student apartment building close to NC State University, we converted an empty crawl space into a laundry room with four coin-operated washing machines and four dryers. I had 24 units in the building, most of which were two bedrooms, so approximately 48 residents. This simple amenity generated more than $1,000 per month. The extra $12,000 per year meant an instant equity gain of over $200,000.

    Most suppliers will offer financing or lease options for laundry equipment so you can get started with little capital out of pocket. Coin-operated washers and dryers can also be purchased from major home supply retailers, through Amazon or directly from equipment manufacturers.

    4. Parking

    I’ll give you a personal example: I purchased a church building a few years ago for $860,000. The building is 6,000 square feet and sits on a busy corner near lots of retail and where parking is scarce. I purchased it for the land value with the intent to demolish the building and develop a five-story mixed-use property. The existing building came with something unusual for the neighborhood: an underground parking garage with 21 spaces.

    Knowing the new development would take years, we rented out the parking spaces to pay the property taxes and carrying costs. With 21 spaces rented to nearby businesses at $100 per month per space, we generated $2,100 in monthly revenue, covering nearly half of the $4,500 mortgage.

    If we were to keep the building as a rental property, the extra $25,200 per year translates into $560,000 of additional equity in the building (at a 4.5% cap rate) — making up two-thirds of the $860,000 I paid for the entire property. While it may be difficult to purchase a standalone parking lot due to the demand for land, you can look for properties in infill locations that come with extra off-street parking. This additional revenue source can provide a welcome boost to your bottom line.

    Related: 6 Key Questions You Should Always Ask Before Investing in a Commercial Real-Estate Property

    5. Rooftop cell towers

    A cell tower requires as little as 50 square feet for installation. One rooftop tower can support as many as five carriers and 15 other digital antennas, generating up to $12,000-$15,000 in gross monthly revenue. That’s $6,000-$7,000 in monthly income on a 50/50 split with the supplier. The extra $72,000-$84,000 per year would result in an equity increase for the property of $1.4 million to $2.1 million, often with no out-of-pocket cost.

    Start by contacting American Tower, SBA and Crown Castle — the largest tower suppliers in the U.S. — to gauge demand for a tower on your property and try to get competitive offers. Most will structure their lease payments as a revenue split on the income from AT&T, T-Mobile, Verizon and other carriers.

    6. Freestanding cell towers

    Nearly all suburban developed properties have a 100’x100′ space where a freestanding cell tower can be placed. I’ve even seen some on footprints as small as 50’x50′. Dimensions, location and zoning are dictated by local ordinances, but if you can carve out a 5,000 to 10,000-square-foot section, a cell tower can potentially generate more monthly income than the property itself.

    Rental income or profit sharing on a traditional cell tower can range between $3,000-$8,000 per month based on population density. Even nominal income from a cell tower lease can have a major impact on your equity position and recapitalize in the event of a sale. As with rooftop antennas, cell tower installers and operators can tell you if there is a need for additional coverage where your property is located.

    This is the beauty of real estate: Small changes to cash flow create huge differences in property valuations, asset equity and the owner’s net worth.

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    Nikita Zhitov

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  • Stored, Poured, and Explored: How to Create a Sommelier’s Wine Cellar – Sotheby´s International Realty | Blog

    Stored, Poured, and Explored: How to Create a Sommelier’s Wine Cellar – Sotheby´s International Realty | Blog

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    Arthur Goodrich – Sotheby’s International Realty – St. Helena Brokerage

    In the heart of the Calistoga Hills, set amid verdant vineyards yielding some of Napa Valley’s most coveted cabernets, you’ll find a sommelier’s dream home.

    This 46-acre property previously served as a boutique school for boys, so its grounds play host to all sorts of useful amenities—common rooms and workspaces, studios and a gym, courtyards and sporting greens—that have been thoughtfully remodeled as a resort-like private residence. It’s an ideal destination for anyone, but what it offers to wine connoisseurs is a genuine dream come true.

    Form Deserves the Same Consideration as Function

    Arthur Goodrich – Sotheby’s International Realty – St. Helena Brokerage

    A sommelier’s cellar must meet multiple technical specifications, but this pragmatism shouldn’t come at the expense of aesthetics. The most elegant designs, like the most elegant wines, are experiences as original and memorable as they are opulent and sumptuous.

    That’s why dedicated tasting rooms are in-demand, transforming what was once solely a cellar into a sanctum where wine can be enjoyed with all the senses—seen, smelled, swirled, and sampled.

    In this particular home, a custom wooden table and seating have been added along with a plush woven rug, conceptually combining the classic wine cellar and the contemporary tasting room in a single, well-appointed refuge. A cellar like this is comfortable for not only the patrons, but for the wine itself.

    Temperature and Humidity Must Remain Top of Mind

    Of all the rigorous requirements a sommelier’s cellar must abide by, none are more important than temperature. In order for the wine to age at its natural rate, a state-of-the-art facility should maintain the thermostat in a range of 55 to 58 degrees with minimal fluctuations.

    Humidity is also a critical factor, and must be kept between 50% and 70%. Any more humid than that, and mold may form on labels and corks; any less, and corks could shrivel slightly, allowing air to percolate through the weakened seal and cause the wine to spoil.

    The Right Kind of Light Won’t Put Your Wine at Risk

    Arthur Goodrich – Sotheby’s International Realty – St. Helena Brokerage

    Wine cellars are typically associated with being bunker-like—sequestered and subterranean, with small faint lights that are rarely left on. This is for good reason, since the sun emits UV radiation that reacts with wine’s phenolic compounds and degrades it, which is why bottles are crafted with tinted glass. In fact, even fluorescent lights cast trace amounts of UV, and like incandescent lights, they also emit heat and can subtly raise the temperature of a wine cellar.

    Does this mean that all wine storage has to take place below ground, in darkness? Not at all. With double-layered panes and augmented UV protection, frameless glass wine cellars have gained popularity as a way to store a collection in full view of guests. This property features one on the ground floor, giving it prime placement in the home without the risk of prematurely aging the wine.

    But for the traditional wine cellar, cool and bright LED lights are the best option. And because high-end wine cellars can be energy-intensive, their efficiency is a welcome bonus.

    Proper Posture Ensures Protection for the Collection

    Wine bottles should be laid horizontally when stored in a cellar. The cork is kept moist through contact with the wine, meaning it won’t dry out and damage the seal.

    Less well-known is the fact that subtle vibrations, such as the rumbling of a washing machine nearby or the trundling of trucks on a busy thoroughfare, can agitate the wine’s sediments, thus lowering the levels of tartaric and succinic acid that give the drink its signature notes.

    Wine, Like Property, is an Investment Worth Making

    Kelly Brophy and Olivia Decker – Golden Gate Sotheby’s International Realty

    Good wine can be literally worth its weight in gold. That’s another reason why it’s so critical to keep it in pristine condition, from its flavor and corking to its label and original casing. Keep those limited edition boxes somewhere secure, like the deluxe wine cellar in this estate also located in California’s renowned wine country.

    Kelly Brophy and Olivia Decker – Golden Gate Sotheby’s International Realty

    But before purchasing remarkable wines, purchase the type of property and the type of wine cellar that can protect your investment for the long term. Like fine wine, a fine home will continue to appreciate in value while bringing immense satisfaction to its owner.


    Fine wine pairs well with delicious food. Look inside these kitchens for the home chef.

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    Melissa Couch

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  • Straight from the Hearth: 4 Homes with Cozy Fireplaces – Sotheby´s International Realty | Blog

    Straight from the Hearth: 4 Homes with Cozy Fireplaces – Sotheby´s International Realty | Blog

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    Each of these four eye-catching fireplaces—one an ornate mantel carved from stone, another a sleek contemporary piece clad in dazzling black tile—contribute warmth and style to their singular settings.

    Classic, Comfortable Manhattan Haven

    Diana Devendorf Rice | Sotheby’s International Realty – East Side Manhattan Brokerage

    Overlooking the East River and the terraces of the iconic River House, this renovated Art Deco cooperative residence is a classically elegant aerie on one of Manhattan’s most distinguished tree-lined cul-de-sacs. In addition to a kitchen with custom gray and white cabinets and Miele appliances, it includes two bedrooms—one of which easily functions as an office or library—and a light-filled living room with Tudor-style leaded-glass windows and a stately carved stone wood-burning fireplace.

    Estancia del Rio

    Gary Bobolsky | Sotheby’s International Realty – Santa Fe Brokerage

    Northwest of Santa Fe along the Rio Chama, this remarkably private 1,000-acre property—two separately deeded 500-acre tracts with a private well—enjoys vast views of the glorious scenery memorialized in the works of Georgia O’Keeffe. Landscaped stone paths lead from a home offering a formal stone-walled living and dining space with an oversized arched fireplace to the sleeping casitas. A large soaking pool sits just below the outdoor living spaces, and the ranch enjoys access to the river.

    California Contemporary

    Robert Radcliffe | Sotheby’s International Realty – Santa Monica – Venice Brokerage

    This thoughtfully designed 3,770-square-foot four-bedroom contemporary home allows for the consummate indoor-outdoor California lifestyle. Atop the roof is a deck with 360-degree city views, and the property offers a sauna, an ipe deck, and an additional residence with its own entrance and deck. The open-plan main level consists of a kitchen with top-of-the-line appliances and quartzite countertops, a dining area with a clever interior plant wall, and a welcoming living room with a dazzling custom-tiled fireplace.

    Stylish Serenity in Sherman Oaks

     John GiddinsSotheby’s International Realty – Beverly Hills Brokerage

    This stylish and serene home on a quiet cul-de-sac in Sherman Oaks is replete with graceful archways, herringbone-patterned white oak floors, and uncommonly elegant finishes. Its 3,247-square-foot floor plan offers four bedrooms, while the generous backyard features dining and sitting areas, a firepit, a spa, and a built-in grill. Adjoining in an ideal flow for entertaining are a stylish living room, an inviting family room, a gourmet kitchen, and a formal dining room with doors to the backyard and a striking Calacatta marble fireplace.

    Discover luxury homes for sale and rent around the world on sothebysrealty.com

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    Melissa Couch

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  • This company has wiped out more investor wealth in 2022 than Tesla

    This company has wiped out more investor wealth in 2022 than Tesla

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    Elon Musk has been trying this week to defend Tesla’s abysmal stock performance in 2022. The electric vehicle giant has seen its stock plummet by 61% this year, making it the 11th-worst performing stock in the S&P 500 in 2022.

    “As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop,” Musk tweeted.

    You might expect that Tesla’s stock drop has wiped out more investor wealth than any other stock in the world this year. But you would be wrong.

    If we look at declines in market capitalization — the value of companies’ common-shares outstanding — Tesla
    TSLA,
    -1.76%

    has been the fourth worst-performing stock in the benchmark S&P 500 this year, as of 1 p.m. ET on Dec. 21:

    Company

    Ticker

    2022 market cap change ($bil)

    Intraday market cap on Dec. 21 ($bil)

    Dec. 31, 2021 market cap ($bil)

    2022 price change

    Amazon.com Inc.

    AMZN,
    +1.74%
    -$805

    $886

    $1,691

    -48%

    Apple Inc.

    AAPL,
    -0.28%
    -$753

    $2,160

    $2,913

    -24%

    Microsoft Corp.

    MSFT,
    +0.23%
    -$700

    $1,825

    $2,525

    -27%

    Tesla Inc.

    TSLA,
    -1.76%
    -$622

    $439

    $1,061

    -61%

    Meta Platforms Inc. Class A

    META,
    +0.79%
    -$466

    $318

    $784

    -64%

    Nvidia Corp.

    NVDA,
    -0.87%
    -$329

    $406

    $735

    -44%

    PayPal Holdings Inc.

    PYPL,
    +0.67%
    -$143

    $79

    $222

    -63%

    Netflix Inc.

    NFLX,
    -0.94%
    -$134

    $133

    $267

    -51%

    Walt Disney Co.

    DIS,
    +1.55%
    -$122

    $160

    $282

    -44%

    Salesforce Inc.

    CRM,
    +0.19%
    -$119

    $131

    $250

    -49%

    Source: FactSet

    On a percentage basis, all these stocks have performed worse than the full S&P 500, which has fallen 19%, excluding dividends.

    Amazon.com Inc.
    AMZN,
    +1.74%

    has erased more shareholder wealth than any other publicly traded company in 2022. In total, investors in Amazon have lost $804.6 billion this year. The stock is down 48% in 2022.

    Apple Inc.
    AAPL,
    -0.28%

    and Microsoft Corp.
    MSFT,
    +0.23%

    have also suffered larger market-cap declines than Tesla, by virtue of their sheer size.

    The companies have different fiscal and annual period ends, but if we look at data for the past three reported quarters and compare to the same period a year earlier, here’s how the four stack up:

    Company

    Ticker

    Change in sales for three quarters from year-earlier period

    Change in EPS for three quarters from year-earlier period

    Amazon.com Inc.

    AMZN,
    +1.74%

     

    10%

    N/A

    Apple Inc.

     
    AAPL,
    -0.28%
    6%

    2%

    Microsoft Corp.

     
    MSFT,
    +0.23%
    14%

    -2%

    Tesla Inc.

     
    TSLA,
    -1.76%
    58%

    169%

    Source: FactSet

    Amazon showed a net loss of $3 billion for the first three quarters of 2022 as the company neared the end of its extraordinary multiyear effort to build out its warehouse and fulfillment infrastructure. For the first three quarters of 2021, the company booked $19 billion in profits. When announcing Amazon’s third-quarter results CEO Andy Jassy said the company was working methodically toward “a stronger cost structure for the business moving forward.”

    The incredible growth of Amazon’s cloud business has stalled and disappointed the expectations the company had nurtured on Wall Street. The Amazon Web Services business is facing increasing competition from the likes of Microsoft and its customers are pulling back. Meanwhile, retail sales have also come in weak going into the Christmas and holiday season. 

    Amazon’s stock has declined 22% since it closed at $110.96 on Oct. 27, right before it disappointed investors not only with its third-quarter results, but with its outlook: It expects to break even during the holiday quarter. Analysts polled by FactSet had previously expected a profit of more than $5 billion.

    Tesla stands in contrast to Amazon, as you can see on the table above. Its sales grew by 58% during the first three quarters of 2022 from the year-earlier period and its earnings per share rose nearly threefold.

    This has been a year of significant declines for shares of giant tech-oriented companies, especially those that had traded at lofty price-to-earnings valuations — that group includes Amazon and Tesla. In fact, these companies have given up all their pandemic era gains int he stock market.

    But with Tesla’s results so outstanding through the first three quarters of 2022, it raises the question: How much of the drop in the electric car makers share price was tied to Musk’s actions as CEO of Twitter, which he acquired on Oct. 27 after a monthslong saga? And how much of a relief rally, if any, might there be for Tesla if Musk, as expected, steps down as Twitter CEO?

    How about some bottom-feeding?

    Here’s the same list of 10 stocks in the S&P 500 that have seen the largest declines in market cap this year, with a summary of analysts’ ratings, consensus price targets and declines in their forward price-to-earnings ratios:

    Company

    Ticker

    Share “buy” ratings

    Dec. 21 closing price

    Cons. price target

    Implied 12-month upside potential

    Forward P/E as of Dec. 20

    Forward P/E as of Dec. 31, 2021

    Amazon.com Inc.

    AMZN,
    +1.74%
    91%

    $85.19

    $134.85

    58%

    49.3

    64.9

    Apple Inc.

    AAPL,
    -0.28%
    74%

    $132.30

    $173.44

    31%

    21.4

    30.2

    Microsoft Corp.

    MSFT,
    +0.23%
    91%

    $241.80

    $293.06

    21%

    23.7

    34.0

    Tesla Inc.

    TSLA,
    -1.76%
    63%

    $137.80

    $272.64

    98%

    24.6

    120.3

    Meta Platforms Inc. Class A

    META,
    +0.79%
    63%

    $117.09

    $145.45

    24%

    14.5

    23.5

    Nvidia Corp.

    NVDA,
    -0.87%
    68%

    $160.85

    $195.72

    22%

    39.2

    58.0

    PayPal Holdings Inc.

    PYPL,
    +0.67%
    71%

    $68.76

    $104.32

    52%

    14.5

    36.0

    Netflix Inc.

    NFLX,
    -0.94%
    47%

    $288.19

    $302.89

    5%

    28.4

    45.6

    Walt Disney Co.

    DIS,
    +1.55%
    82%

    $87.02

    $119.60

    37%

    19.8

    34.2

    Salesforce Inc.

    CRM,
    +0.19%
    78%

    $128.45

    $195.18

    52%

    23.4

    53.5

    Source: FactSet

    A majority of analysts see a golden path ahead for 2023 for all of these stocks except for Netflix.

    For more information about any of these companies, click the tickers.

    Click here for a detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Don’t miss: 11 high-yield dividend stocks that are Wall Street’s favorites for 2023

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  • Jefferies: REITs sector is at an interesting crossroads— here’s why

    Jefferies: REITs sector is at an interesting crossroads— here’s why

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    Share

    Jonathan Peterson, Jefferies managing director, joins ‘Power Lunch’ to discuss Peterson’s thoughts on real estate investment trusts, the subtypes within the hospital sector and more.

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  • Luxury Real Estate Headlines: Fourth Week in December, 2022 – Sotheby´s International Realty | Blog

    Luxury Real Estate Headlines: Fourth Week in December, 2022 – Sotheby´s International Realty | Blog

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    Highlights from this week’s top news stories on luxury and global real estate, art, collectibles, and home.

    Bedford, New York | Julia B. Fee Sotheby’s International Realty

    The home comes completely furnished—and with a $300,000 boat.

    This $12 Million New York Manse, With a Rock Wall and Zip Line, Is Like a Luxury Summer CampRobb Report

    An Experimental Home With a Shape-Shifting Interior Just Hit the Market for the First TimeDwell

    Lavish Lake House Cannonballs Onto the Market as Michigan’s Priciest Listing at $18MRealtor

    Florida Homes Are Still Selling in Four Days—At Least Inside Disney WorldMansion Global

    After Listing for $125 Million, a Malibu Home Sells for $91 MillionThe Wall Street Journal

    Palazzo Raggi by Tamburini Architectural StudioArchitecture Magazine

    Peek Inside This Enchanting Texas Home with Its Own CasitaApartment Therapy

    How to relocate to the CaribbeanThe Times

    East Hampton House Designed by Norman Jaffe Up for Auction, AgainBehind the Hedges

    $1.8 Million Homes in Florida, Tennessee and New MexicoThe New York Times

    10 Most Expensive Homes Sold in Greater HoustonHouston Agent Magazine

    Homes for Sale in Brooklyn and ManhattanThe New York Times

    7 of the Prettiest Houses Under $500,000 to Hit the Market in 2022Apartment Therapy

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    Melissa Couch

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