TrafficCourt

Everybody Back in the Pool!

RSS
Updated at 4:53 PM

Wow. What a day. The Dow was doing well all day and then at the end it really took off. The net result is a gain of more than 900 points. That's the largest one-day move in either direction. Percentage-wise it went up more than 11 percent, ranking it as one of the top five days of all time.

Just about every retail REIT gained ground today as well with about half a dozen or so gaining 10 percent or more. PREIT was the biggest gainer, jumping 19 percent today. General Growth was also up big gaining 17 percent and moving from $4.82 per share to about $5.60 per share.

The results were similar around the globe with stock markets in many countries posting huge gains. I guess people really like the plan that the G7 and that Secretary Paulson have come up with to finally stabilize the financial markets. We can only hope that these gains hold and that things continue moving up. Given how volatile things have been, however, I have a bad feeling that we're not quite out of the woods just yet. Most alarmingly, the TED Spread, the difference between the interest rates for three-month U.S. Treasuries contracts and the three month Eurodollars contract, didn't move much today and remains at 4.57. In normal times that spread is less than 50 basis points.

Update: It occurred to me that even though the stock market was open today, the bond market was not. That could be a reason the TED spread didn't move as much. We'll have to keep an eye on it tomorrow. If there's signs of relief there, perhaps we'll get over the hump in the credit crunch and things will begin easing a bit.

Please or Register to post comments.

What's TrafficCourt?

Industry news, views and occasional strange stuff.

Contributors

Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
Blog Archive
National Real Estate Investor Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×