3 Clever Strategies To Capitalize on the Commercial Property Crisis

You are receiving this email because you signed up to receive our free e-letter the Wealth Whisperer 3 Clever Strategies To Capitalize on the Commercial Property Crisis 02/19/2024 There is a ticking time-bomb that just ignited in the banking sector. Over $1 trillion in commercial real estate loans are set to mature by the end of this year. No one truly knows what these empty office buildings are worth. Brokers have begun discounting Blackstone Manhattan commercial property debt by almost 50%. Source: MidJourney.com Since most commercial loans are interest-only, banks and real estate investment trusts (REITs) carry the entire principal on their books. That means they have to cover any losses when they sell the property. Recently, New York Community Bank, one of the supposed "winners" from last year's regional banking crisis, saw its stock chopped in half. The bank shocked investors regarding how much money they set aside to cover potential losses. Most folks don’t want to go anywhere near these problems, especially with their retirement portfolios. However, we’re going to reveal three clever strategies to capitalize on this crisis while managing risk. SPONSORED CONTENT [China’s Global Conspiracy to Destroy the American Dollar]( China is nearing the end of its 40-year plan to dominate the world’s economy. Only one obstacle remains: The U.S. dollar. But not for long... because China has enlisted many co-conspirators to sink the dollar: Russia, India, Brazil, Argentina, Germany and even Canada. And -- no surprise -- the International Monetary Fund (IMF) wants to jump in to help China win. This means China now has the power to crush the dollar almost overnight... and bankrupt America, along with most of your investments. But there’s still time to protect your money and retirement. [Click here now to find out how... before it’s too late.]( [Click Here to Read More...]( Strategy #1 - Exchange-Traded Funds (ETFs) Instead of Stocks Regional banks hold 70% of all commercial real estate loans. New York Community Bank (NYCB) was a particularly interesting case. Over half of its multi-family loan portfolio is in New York, which is subject to rent control. While rent-stabilized housing defaults are typically low, like 0.32%, they skyrocketed last year to 4.93%. But this stock doubled off its lows, while Western Alliance Bancorp (WAL) quintupled. Now, chances are you don’t own NYCB in your retirement portfolio. And you probably don’t hold stocks like Vornado Realty Trust (VNO)... … a REIT that owns over 19 million square feet of office space in Manhattan, San Francisco and Chicago -- three places where crime is up, jobs are down and people are fleeing ... … but also more than doubled off its 2023 high. However, it would be nice to catch a piece of the action, wouldn’t it? Although there are plenty of juicy stocks prime for the picking, the average investor isn’t going to take the time to peer through a bank’s books. And unless you’re skilled in that area, we wouldn’t suggest you try. However, ETFs can limit your exposure to individual bank problems while riding. Consider this…. Silicon Valley Bank’s failure was the second largest in history, only behind Washington Mutual in 2008. SVB’s stock went to zero. Western Alliance’s stock plunged 90% at its worst. The KRE Regional Bank ETF plunged over 40% once the crisis hit in March 2023. Within four months, it had cut those losses in half. The overall S&P largely shrugged off the problem. The broader financial sector dropped almost 16%, while the VNQ REIT ETF dropped about 13%. Both recovered all they lost within four months. Industry and sector-based ETFs help reduce drawdown risk while providing exposure to rebounds. And if you’re smart with how you approach the position, keeping your size small and dollar cost averaging into it, you can earn some nice gains on others' pains. Sponsored Content [If everyone knew this, Wall Street would go out of business]( There's a "hush-hush" trading strategy institutional investors like to keep to themselves... Because if everyone knew about it, they'd be out of business! In fact, some traders are using it to win 9 out every 10 trades they place. [Click here and I'll show you how it works.]( [Click Here to Read More...]( Strategy #2 - Try Some Options One of our favorite option strategies is what’s known as a put credit spread. And with a clever adjustment, you can create a straightforward bet that can return 50-100% on your investment. Here’s the mechanics of how it works: - Pick an ETF like the KRE - Wait for the ETF to drop a large amount, like 20-40%, as the KRE did. - Select an expiration cycle about nine-12 months out. - Sell an at-the-money put credit spread This bet makes money so long as the KRE is higher within the next year, with the maximum gain at expiration. A year might seem like a long time to wait. But you’re betting the broader industry will recover within a year. Short of a total systemic collapse in the banking system like 2008, that shouldn’t happen, especially with the Fed willing and able to step in and save the market. Plus, if the KRE rebounds quickly, you can always take the trade-off for a partial profit. Now, there’s one strategy we saved for last that blows these other two away. [Learn to Trade Like Interest Rates Don't Matter]( As February overflows with interest rate headlines, here’s a fresh perspective for you: Learn to trade like interest rates don’t matter. Whether you're a stock trader, options trader, swing trader, or day trader, this A.I. “Brain” is predicting market movements days in advance. [Don’t Miss This FREE Live Class to Learn How >]( [Click Here to Read More...]( Strategy #3 - Get the Money You Are Owed Most Americans don’t realize how much money is out there just waiting for them to claim. For example, have you ever looked at unclaimed assets held by the states you’ve lived in? Any leftover paychecks, refunds or similar items that never find their way to you are held in state accounts, waiting for you to claim them. We’re talking billions of dollars. And it’s not just your assets. You may have claims for your parents as well. This is one of the most obvious places to collect the money you’re owed. But did you know there are 11 guaranteed streams of lifetime income 96% of Americans are missing entirely? It sounds crazy, we know. Bob Carlson explains how you can recapture this lost wealth in his latest Retirement Watch update [RIGHT HERE.]( To Your Wealth, The Wealth Whisperer Team About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. Visit Our Websites: - [StockInvestor.com]( - [DividendInvestor.com]( - [DayTradeSPY.com]( - [CoveredCall]( - [MarkSkousen.com]( - [GilderReport.com]( - [BryanPerryInvesting.com]( - [JimWoodsInvesting.com]( - [InvestmentHouse.com]( - [RetirementWatch.com]( - [SeniorResource.com]( - [GenerationalWealthStrategies.com]( - [InvestInFiveStarGems.com]( - [[YouTube] Visit our YouTube Channel - Eagle Investing Network]( To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. This email was sent to {EMAIL} because you are subscribed to Wealth Whisperer. To unsubscribe from this list please click [here](. To stop receiving emails simply click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). View this email in your [web browser](. Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized advice on finances. Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company 122 C Street NW, Suite 515 | Washington, D.C. 20001 [Link](