Wealth and Wisdom: Week of February 12, 2024

It appears Wall Street is about ready to move on to its next existential crisis.

The U.S. commercial real estate market is colossal: $20 trillion worth of buildings – offices, retail stores, hotels, factories, warehouses and the like – serving as home to American businesses. American banks currently hold about $2.7 trillion in commercial real estate loans on those buildings, and about 80% of that debt is held by smaller, regional banks.

The problem is, property valuations have been falling since the pandemic changed the way we think about work, and higher interest rates aren’t helping, either. Much of the debt is now coming due, and those regional banks may have trouble collecting. We are already starting to see some credit downgrades, and there are fears of another round of bank failures like those we saw last spring.

Those fears, of course, may turn out to be overblown. Construction of new buildings is slowing down, and the number of loans coming up for refinancing will drop sharply next year. But this is an issue likely to stay in the headlines for some time to come.

Webinar: The Year Ahead

Our thoughts about what investors might face in 2024 – from the economy, to the financial markets, to the presidential election. (Running time: 58 minutes)

Buying stocks at record-high prices

Does the thought of investing when the markets are at all-time highs make you nervous? History might give you some reassurance. (Reading time: 2 minutes)

China tells investors to stay home

Chinese investors are wisely opting to diversify their portfolios internationally – and Beijing has apparently had about enough. (Reading time: 2 minutes)

How global markets stack up

Compared with the U.S. stock market, China’s market is tiny. In fact, so are the markets of every other country in the world. (Reading time: 2 minutes)

Car insurance rates are soaring

Auto insurance premiums are 26% higher than a year ago nationwide – and Missouri drivers are seeing bigger increases than any other state. (Reading time: 2 minutes)

What to know before you file your taxes

Here are 10 things to keep in mind as this year’s tax deadline approaches. (Reading time: 6 minutes)

Did you sell your home in 2023?

Depending on your sales proceeds, you may or may not owe taxes on the profit. Here’s how to tell. (Reading time: 4 minutes)

Finding a qualified tax preparer could be tough

Accountants are in short supply this tax season. Here’s what the IRS says you should be looking for. (Reading time: 3 minutes)

10 questions for your financial advisor

Hiring someone to help you with your finances is a huge decision – and the answers to these questions could help you make it. (Reading time: 8 minutes)

Are these the good old days?

It’s tempting to compare today’s financial challenges to the “kinder and gentler times” our parents enjoyed. But were they really better off? (Reading time: 5 minutes)

Words to the Wise

“How many times does the end of the world as we know it need to arrive before we realize that it’s not the end of the world as we know it?”

– Michael Lewis

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