Three Major Market Moves In Three Days

Welcome to the Real Estate Espresso podcast, your morning shot at what’s new in the world of real estate investing. I’m your host, Victor Menasce. On today’s show, we’re looking at clear signals that financial markets are sending us over the last few days. There are three major moves in the market that are noteworthy, and we’re going to unpack all three.

The three major market moves include:

1. The Rising of the US Dollar:

The US dollar has risen dramatically in the past week. We saw the dollar fall precipitously against many major currencies and in the Euro in particular, back in June, it hit a new low in early July. However, whenever a commodity like the dollar falls too far too fast, it’s a sign that things may be oversold. The fall in the dollar was not based on fundamentals; it was based on a sell America narrative tied to the trade war started by President Trump.

2. Drop in Short Term Rates:

Short term rates have dropped, also dramatically, in the last couple of days. Such a massive swing in a very short period of time indicates people are piling into the 90-day T-bill.

3. Resignation from the Fed Board of Governors:

We also have Adrianne Kugler resigning from the Fed Board of Governors effective this coming Friday. She cited the reasons for her resignation as personal. She was appointed in 2023 by President Biden and was one of the more hawkish members of the Board of Governors. This leaves an opening for President Trump to appoint a new member to the Board who is likely to be more in line with the President’s desires for Monetary Policy.

These are just a few of the major things that have happened in the last few days that will affect the cost of capital for investors in real estate across the board. As you think about that, have an awesome rest of your day. Go make some great things happen.

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