Our Top 10 (Actually 11) Market Observations for 2012
It has been several months, actually several quarters, since we last distributed a Market Commentary. We would love to ring in the New Year with a prediction about how market fundamentals point to a rosier investment environment in 2012. However, we remain skeptical of the pace of the recovery of the capital markets and property valuations, absent sustained improvements in operating fundamentals and in the face of the global economic environment. We believe that assets are being priced for perfection, considering the relentless waves of conflicts and challenges - the European debt crisis, instability in the Middle East, a lack of political leadership in Washington and in other sovereign capitals and, as we embark upon the New Year, the continuing US budget crisis (as the so-called Super Committee has proven itself to be not so super), renewed threats of Greek default and unrelenting pressure on the European Union.