A Comment -- General Comments From an Expert (A Commentary)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Another meltdown like we saw in March is very unlikely. There is stability in the presidency, more stimulus coming, low rates and earnings have been good. Many companies have prospered even in a pandemic. A split congress is also good for markets. Volatility is expected to a certain degree as investors adjust positions, take profits and rotate sectors. Unlock Premium - Try 5i Free

cap rate: For the last 2-3 years, the average cap rate in the US real estate was 5.5% vs. the 2.7% US treasury rate (3-year average). And now the latter has fallen to 90 basis points, so the cap rate is even more attractive. Apartments: The effect of record low interest rates is huge; financing rates for Canadian apartments in the last 6 months have fallen 100 basis points. Meanwhile, we're seeing record low cap rates in midtown Toronto. Retail: pre-Covid, e-commerce sales were already taking away from brick-and-mortar. Today, how can traditional retail survive? Be careful what retail REITs you buy. Office space: before Covid, businesses were already using less office space and will continue to be challenged even during the recovery. He sees less demand in the medium term.