March 2022 was a great month for us at BAI Capital, although in the world at large, it has been a very turbulent month.
While the war in Ukraine continues, and the markets continue to be volatile, investing in the US and Florida has never been better, as real estate continues to boom in Florida, and the EB-5 Immigration Investment Program has been re-authorized until 2027. Plus, COVID is on the wane after 2 years of global disruption.
Let’s recap our top investment stories from March 2022.
As you are probably aware, the EB-5 Visa Program was re-authorized on March 11, after lapsing at the end of June 2021.
The EB-5 Program is re-authorized, locked in, and renewed for 5 years. The investment amounts – and the program – will stay fixed for 5 years, until 2027, when they will be raised by USD 50,000 per year according to inflation.
Other key 2022 updates to the EB-5 Visa Program revolve around more transparency, security, and accountability for immigrant investors.
In a new study, researchers predict that the lifting of masking and social-distancing restrictions in March 2022 could lead to resurgences of Covid-19 deaths in most states, based on projections from a simulation model.
The study also found that delaying lifting restrictions would not prevent surges in deaths for those states, concluding that there is no “magic moment” to lift restrictions.
The study, published last Friday in the Journal of the American Medical Association Health Forum, projected deaths from Covid-19 in each of the 50 states, the District of Columbia, and Puerto Rico between March 1 and December 31, 2022.
For full details on the findings of this study, click here.
Long-term Effects of War in Ukraine
Russia’s attack on Ukraine will have lasting and negative effects on the world economy, with especially harsh impacts on Russia for a decade or longer, lesser negative consequences on Europe for a decade, with even smaller effects on the U.S. and the rest of the global economy.
The United States and the rest of the global economy will be mildly hurt, primarily through higher oil prices. Those prices won’t be as dramatically high as they are now if a truce is signed, but even then lower long-run oil production from Russia will cost the world as we switch to oil produced in higher-cost locations.
The world will also be a little worse off as more companies choose to shorten their supply chains. Complex global supply chains lower productions costs when they work well. Multinational corporations learned about supply chain fragility from the Japanese tsunami and Thai floods. Then the Covid pandemic tangles supply chains like an unruly snarl of yarn. Now we learn that two countries that are not manufacturing powerhouses still make some components critical to other countries’ businesses. The switch to shorter, more domestic supply changes will not be sweeping. But at the margin, when a business purchasing manager sees costs not too far apart for domestic versus foreign products, the decision will go to local sourcing.
In March we launched a new website to promote our new Gainesville Florida development – Archer Place.
Archer Place is a mixed-use project development located in Gainesville, Florida with 164 apartment units for rent, 92 condo units for sale, 550+ parking spaces, and over 15,000 sq ft of retail space.
The target residents of Archer Place are the student base of the University of Florida, along with the health professionals who work in the area, and their families.
The target market for investors is select individuals like you who want to acquire a high-return property for rent. Or who want to take part in the equity capital raise opportunity of the development construction.
The housing market in the US is booming and nowhere more so than in Florida. Concern that the housing bubble may burst in the next year is mitigated in Florida by the steady influx of newcomers plus the attractive tax rates.
Low inventory and high demand are the long-term forecast for the Sunshine State, evenly bolstered by a diverse economy, year-round ideal weather, great access to education, and low cost of living.
You can easily purchase Florida property from overseas.
By end of March 2022, Dow dropped 500 points to end the worst quarter for stocks in 2 years. However, The S&P 500 and Nasdaq rose more than 3% in March, while the Dow added 2.2%.
“There’s been a nice relief rally, partly on beginning to look past the invasion, some clarity around central bank actions, and some technical buying, as there was a lot of money on the sidelines,” said Erik Knutzen, the chief investment officer for multi-asset class strategies at Neuberger Berman.
“But we think from here investors are going to, at some point, realize, wait a second, growth is slowing and interest rates are rising and inflation is still high.
The VIX volatility index was 20.56 at the end month, down 10 points from the end of February. Sometimes referred to as the “fear index,” VIX is a reflection of investor uncertainty and expected future price fluctuations across the broader financial market.
Wealth management is about navigating the market and economic situations as they arise, even anticipating them beforehand. We assume that you have strategies in your life and businesses that help you deal with adversity and rapid change. As savvy high-wealth investors, we are confident you are familiar with capitalizing on the tides of change.
We share our monthly top news stories recap to help you gain an idea of trends and opportunities that can help you with your portfolio, far into the months and years ahead.
A proven strategy to balance market volatility is to hedge with more stable alternatives, such as property rental in growth markets, or co-ownership in fixed income equity development funds.
To discuss the 2022 investment landscape with one of our investment advisors, simply click the button below.