As we prepare for the Holiday Season and the coming 2011 year, a few thoughts about where we've been and where we might be headed come to mind. 

• Warren Buffett wrote a thank you note to Uncle Sam. Crisis averted and one more chance for investors to get it right.
• A record sovereign bailout, quantitative easing vs. foreign central bankers raising rates to fight inflation.  The global economy is sending mixed signals!
• Property fundamentals have hit bottom and begun to improve. Values have reset, and investment sales activity has picked up nationally. Our local market lags but will show stronger activity in 2011.  Acquisitions will continue to move beyond ultra-safe to higher yield plays.
• The debt maturity crisis turns out to have been overrated.  Rather than crisis, maturities seem to be working through the system in various ways.  More deleveraging and recapitalization work is left to be done in 2011 creating challenges for some but opportunities for the attentive and creative.
• After the bubble, we are finding our way back to a more moderate "new normal" that just might last a while and give our industry a chance to make money the old fashioned way.
• Treasury markets have been very volatile--big daily moves and the 10-year term up 100 basis points from best recent levels.  It's time to lock downfavorable rates before the opportunity has passed. Spot pricing is good for 60-90 days.  Five basis points per month is added if time is needed beyond 90 days, and new loans feature flexible, favorable prepayment structure.

 Wishing you and your families an abundant and fruitful holiday season!

--Melvin Mark Capital Group