Avatar Financial Group

The Federal Reserve released a report this week noting that foreigners held $16.49 trillion in equities as of the end of the fourth quarter. Which is why Gerry Fowler, head of European equity and global derivatives strategy, warned that just a 5 percentage point shift in U.S. equities, would lead to a decline. Indeed, foreign investors reallocating money away from the U.S. could fuel a nearly $1 trillion sell order on U.S. equities, according to a UBS strategist. https://hubs.la/Q03bXSCJ0

Avatar provided a $7M bridge loan secured by 3 MOBs operated by North Country HealthCare in Northern Arizona. The 18-month loan, structured at a 10.99% initial rate and 45% LTV, provides the nonprofit healthcare provider with working capital they can use toward their operations and services. The collateral includes the regional network’s key hub in Flagstaff as well as facilities in Show Low and Winslow, AZ.

Avatar provided a $7.4M bridge loan secured by a 105,550-SF multi-parcel industrial asset in Ripon, CA, and a 48-lot residential development site outside of Sacramento. The financing, structured with a two-year term, 43% combined LTV, and initial interest rate of 11.50%, offers the borrower a strategic solution to refinance maturing debt while executing a long-term business transition.

According to Mchael Wilson, Chief U.S. Equity Strategist and Chief Investment Officer for Morgan Stanley, who turned positive on U.S. stocks last year, said the current market drawdown, which has the Nasdaq in correction territory and the S&P 500 suffering its biggest weekly decline in six months, is likely to last until the middle of the year. Wilson believes U.S. stocks could fall sharply over the coming months if recession risks materialize. https://hubs.la/Q03bbPQC0

If there is one word that seems to describe the current economic landscape, it is uncertainty. Indeed, at the Federal Reserve, this sentiment is echoed by Chairman Jerome Powell, who said today that the central bank can wait to see how President Donald Trump’s aggressive policy actions play out before it moves again on interest rates. With markets nervous over Trump’s proposals for tariffs and other issues, Powell reiterated statements he and his colleagues have made recently counseling patience on monetary policy amid the high level of uncertainty. https://hubs.la/Q039YxHk0

The death knell has been sounded for the one-time popular and pioneering free video calling service Skype as Microsoft, which acquired the platform in 2011, has announced it was pulling the plug on the service in May. Microsoft has been actively encouraging Skype users to migrate to its free version of Microsoft Teams. In the more than two decades since it was founded, Skype has been largely overtaken by a bevy of competitors, such as FaceTime, WhatsApp, Zoom and Slack. https://hubs.la/Q039wSy00

The U.S. Department of the Treasury has announced it won’t enforce the penalties or fines associated with BOI’s (beneficial ownership information) reporting requirements for millions of domestic businesses. The BOI, which was enacted in 2021 to fight illicit finance and shell company formation, required reporting from small businesses to identify who directly or indirectly owns or controls the company to the Treasury’s Financial Crimes Enforcement Network, known as FinCEN. https://hubs.la/Q0391CRz0

While investors are jittery about big tech valuations after Nvidia NVDA delivered earnings and guidance this week, uncertainty remains over the economic impact of DOGE-driven job cuts and constant Trump tariff talk, which has filtered into trader sentiment. But according to Dhaval Joshi, chief strategist of BCA Research’s Counterpoint global macro service, there’s another danger lurking in the background that may sow the seeds for the next financial shock. Primarily his concerns is that inflation and deflation shocks stay in the collective memory for a long time, and inflation expectations are stickier in the former and much less so in the latter. https://hubs.la/Q038P_nr0

A changing face on the wealth on Wall Street is undergoing a significant transformation as new money shakes up the ranks of the super wealthy. Across various sectors, from private credit dynamics to the contest for capital between private credit and broadly syndicated loans, shifts in the financial market are reshaping the way wealth is generated and managed. https://hubs.la/Q038rkQ60

Apple plans to invest $500 billion in a proposed factory for artificial intelligence servers in Texas. The company would work with partners to launch a 250,000-square-foot server manufacturing facility in Houston, which would produce servers for Apple Intelligence, its AI personal assistant for iPhone, iPad and Mac computers. The new factory, which is slated to begin operations in 2026, will form part of a major investment plan Apple is committing to over the next four years. In addition to the new Texas facility, Apple said it also plans to hire around 20,000 new employees across the U.S. https://hubs.la/Q037_L910