One of the benefits of the current flu epidemic for SRED
claimants is the government’s policy of getting money into the hands of
business. No site visits are being done. Other means of assessing claims, and presumably
assessing them speedily, from home no less, are probably being contemplated and
explored. It is not a time to shy away from filing a SRED claim.
Get your hands on cash. A valid SRED claim is one way to do
that. Cash is king now. It is powder to be kept dry for opportunities that will
shape up for asset acquisition after the market has bottomed, probably sometime
this decade. I was long expecting the bubble to burst, but I didn’t know what
the pin would be. Now we know. Stock markets around the world are pricing the new
reality, and probably have a lot further to fall. Don’t chase prices….let them
come to you.
Real estate will probably take a tumble. Just going by
memory here, but my recollection is that the 1840 stock market collapse was
preceded by the 1836 Chicago real estate collapse. The 1926 Florida real estate
bust was followed by the 1929 stock market crash. The 1984 real estate downturn
was succeeded by the 1987 flight from stocks. But sometimes stocks are hit
first, such as the 2008 drop being followed by the 2012 real estate bottom. My
guess is that the market bottom will happen early in a presidential term, so
maybe around 2025. If Trump is re-elected (not seeming as likely as it did
before the current crisis), maybe the bottom will happen in the next couple of
years. If Biden, he will want to delay it until his second term. But that
presupposes that the President can do anything about it.
He may not have the suasion and the Fed may not have the
resources to bail out the banks in the unfolding crash, even though they have
undertaken to underwrite assets from banks without limit. In the late 90s, Wall
Street bailed out the S&L industry. Ten years later, the Fed bailed out
Wall Street. Now 10 years later, who will bail out the Fed?
Don’t let all of this obscure your focus. Get your SRED
claim filed!
