Welcome to the Educated Investor! Wishing you all continued health and wellness. David has been "seeing" clients for reviews and meetings via Zoom and conference calls. If you would like to conduct a meeting with him please contact our office at 720-482-1917 or email scichon@householdergroup.com.

Click Here to View The Newsletter in a PDF Document _________________________________________ F E A T U R E D A R T I C L E

Coronavirus: A Visual Guide to the Economic Impact Global shares take a hit. Big shifts in stock markets, where shares in companies are bought and sold, can affect the value of pensions or individual savings accounts (ISAs). The FTSE, Dow Jones Industrial Average and the Nikkei have all seen huge falls since the outbreak began on 31 December. The Dow and the FTSE saw their biggest quarterly drops in the first three months of the year since 1987.

Investors fear the spread of the coronavirus will destroy economic growth and that government action may not be enough to stop the decline. In response, central banks in many countries slashed interest rates. That should, in theory, make borrowing cheaper and encourage spending to boost the economy. Global markets did also recover some ground in late March after the US Senate passed a $2 trillion (£1.7tn) coronavirus aid bill to help workers and businesses. But some analysts have warned that they could be volatile until the pandemic is contained. More people seeking work In the United States, the number of people filing for unemployment hit a record high, signaling an end to a decade of expansion for one of the world’s largest economies. The surge in universal credit applications followed government measures to limit the spread of the virus, including closing pubs, restaurants and non-essential shops.

Oil prices crash Demand for oil has all but dried up as lockdownsacross the world have kept people inside. The crude oil price had already been affected by a row between Opec, the group of oil producers, and Russia. Coronavirus has driven the price down further. Brent crude is the benchmark used by Europe and the rest of the world. Its price dipped below $20, to the lowest level seen in 18 years. In the United States, the price of a barrel of West Texas Intermediate (WTI) turned negative for the first time in history.

Risk of recession If the economy is growing, that generally means more wealth and more new jobs. It’s measured by looking at the percentage change in gross domestic product, or the value of goods and services produced, typically over three months or a year. But the International Monetary Fund (IMF) says that the global economy will shrink by 3% this year. The IMF described the decline as the worst since the Great Depression of the 1930s. Although it said that the coronavirus has plunged the world into a “crisis like no other”, it does expect global growth to rise to 5.8% next year if the pandemic fades in the second half of 2020.

The effects of lockdowns are visible As many countries and world capitals have been put under strict lockdown, major industrial production chains have been brought to a halt. There is a visible reduction of pollution in the air. Turn to technology Governments around the world have urged employees to work from home where possible. Shares in technology companies such as Zoom have shot up as more people rely on video conference calls and email to hold meetings or get tasks done. The demand for online shopping and entertainment has also soared as people stay indoors. Amazon’s share price has hit new highs, while streaming platform Netflix was at one point a more valuable company than oil giant Exxon-Mobil. Travel among hardest hit The travel industry has been badly damaged, with airlines cutting flights and customers canceling business trips and holidays. Governments around the world have introduced travel restrictions to try to contain the virus. Data from the flight tracking service Flight Radar 24 shows that the number of flights globally has taken a huge hit. Source: https://www.bbc.com/news/business-51706225 Coronavirus: A visual guide to the economic impact By Lora Jones, Daniele Palumbo & David Brown Copyright © 2020 BBC; All Rights Reserved.

How's the Housing Market Amid Coronavirus Pandemic?

We are all in unchartered territory at the moment. The Coronavirus has stopped much of the world from operating. In this article, I will be sharing with you my views as a real estate consultant, investor, and homeowner.  Today, many people feel fear as they have lost most of their income and become increasingly unsure about their future due to the Shelter-In-Place order. This feeling is similar to the Great Mortgage Crisis in 2008 which caused the Global Recession. Although the recession officially ended by the second quarter of 2009, the painful recovery did not truly begin until 2012. However, in every crisis there is opportunity, and many investors made lots of money during this time while others regretted their inaction and missed opportunities. It took four years before consumer confidence began to improve. Since then, most markets have returned above and beyond the last peak. Many economists have predicted a housing crash in 2020 as we experienced the longest economic expansion in history. However, none had predicted the crash would be caused by the coronavirus pandemic.

In January 2020, before the United States became widely aware of the severity of the coronavirus outbreak in China, instead of a recession, we saw a sharp increase in sales activities until the weekend prior to the first Shelter-In-Place order being enacted in Northern California. Since then, the real estate showings practically halted but real estate agents quickly adapted to using virtual tours to help desperate sellers move their properties. Surprisingly, demand is still strong with one caveat, that most buyers are much more conservative in their offer price. So, the biggest question for everyone: Is this the right time to invest during the coronavirus pandemic? Since this is such an unprecedented event in modern history, no one has been able to answer with confidence. However, below are a few questions you should ask before making the decision. How long will this Shelter-In-Place order last in your area?  This depends on how many people are willing to follow the Shelter-In-Place order and all the precautionary efforts recommended including wearing facial coverings in public places. The emotion of today’s coronavirus pandemic is similar to 9/11, where the entire world mourned with our country for the horrific terrorist attack on so many innocent people. We vowed to stand back up stronger and more united as a nation. Today, we feel the same sentiment as our invisible enemy is attacking the innocent and every citizen feels the effect of it. As a community, we must unite and bring back our economy once this coronavirus pandemic is over.

Will there be an influx of distressed sales? In 2008, there was an overwhelming supply of homes because many homeowners had borrowed 100% of the purchase price, while their mortgage balance was often above the home value. The mortgage foreclosure moratorium then allowed many homeowners to seek short sale options while others simply walked away from their homes. Banks were left with too many foreclosed homes leading them to desperately sell to clear their books. Today, we are in a much different situation. Most homeowners have invested an average of 20% down payment on their property, which discourages homeowners to seek short sale or foreclosure options. In addition, part of the two-trillion-dollar coronavirus stimulus package allows homeowners to suspend their mortgage payments up to a twelve-month period. With such a different scenario, even if the sellers are suffering from job losses, they will not sell their home at this time. In other words, unless sellers are in urgent need, most homeowners may decide to not sell their homes until the market recovers. In this case, we will have a shrinking supply which will limit the significant drop in home prices.

What asset type are you investing in? Not all asset types will have the same effect from this coronavirus pandemic. Hospitality - many hotels and short-term rentals will have a significant price reduction as occupancy is down over 95%. Offices - as more people are forced to work from home, many companies will find this a temporary effort to reduce their overhead costs by reducing office space usage. This may also become a more permanent way of working for many companies. Retail - with more restaurant and small business closures, we may see a surge in vacancy. Apartments - class C buildings will be affected more as the tenant type is more susceptible to the effect of loss of income. Unfortunately, landlords still have to pay for maintenance, utilities and property tax to maintain the building. With such a heavy burden, landlords may decide to sell at a lower price if they do not have sufficient reserves to get through this period. Industrial, warehouses, and storage - these asset types will have smaller impacts as manufacturing, storage, and larger facilities will become more popular in the coming days.  1-4 residential units - this asset type will have less impact as mortgage deferment and larger down payments will discourage foreclosures. On the other hand, we may see more people seek bigger homes with anticipation of working from home more often. Where are you investing? Choosing the right market to invest is always important. Different markets will perform differently. Bay Area Real Estate will have less impact as the majority of the workforce is in the technology sector. Their down payment highly relies on the stock market, but once the stock market recovers, their ability to buy will return quickly. Other markets such as Las Vegas will be impacted more significantly where the recovery may take much longer than most. As always, you should consult your trusted real estate advisor before making your real estate investment decision. Source: https://www.forbes.com/sites/forbesspeakers/2020/04/27/hows-the-housing-market/#5b754a8c673c How’s the Housing Market Amid Coronavirus Pandemic? Post Written by Helen Chong © 2020 Forbes Media LLC. All Rights Reserved.

Pineapple Salsa

INGREDIENTS: Whole pineapple  (to use as the bowl) 1 cup diced pineapple 1 cup diced bell peppers (any combination of red, orange, yellow or green peppers) 1 cup diced Roma tomatoes 1/3 cup chopped cilantro 1/4 cup minced red onion 4 tbsp lime juice (about 2 limes or use bottled lime juice) 1/4 tsp black pepper 1/8 tsp salt Optional: 1 tbsp diced jalapenos SERVINGS: 10 TIME: 15 Minutes INSTRUCTIONS: To make the pineapple bowl, cut about 1/3 of the pineapple off, leaving the stem attached to the larger piece of the pineapple. Make a cut around the outer edge of the pineapple fruit and make cuts across the middle too. Use a metal spoon to loosen and scoop out the pineapple chunks.  Pour the extra juice out of the pineapple bowl so that it is empty. Dice enough of the pineapple chunks to make one cup of diced pineapple to be used for the salsa and save the rest for another use. In a small bowl, mix together diced pineapple, diced tomatoes, diced peppers, minced onions, chopped cilantro, lime juice, salt, and pepper. Transfer the salsa to the pineapple bowl for serving.

Sources: https://www.thegunnysack.com/pineapple-salsa-recipe/; Produceforkids.com

Scroll down past picture for answers.

Source: http://www.printmysudoku.com

Householder Group Estate and Retirement Specialists LLC. advisors are Registered Representatives with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Householder Group Estate and Retirement Specialists LLC., a Registered Investment Advisor and separate entity from LPL Financial.