Where you really get in trouble is if the market is dropping and the economy’s slowing down and you don’t take action. – Alan Mulally
Way back in December 2019, I analyzed Starwood Property Trust’s (NYSE:STWD) prospects in 2020. That post discussed issues faced by WeWork (WE), the nervousness of Barry Sternlicht about the Democrats winning the elections, and the strangulation of physical retail by e-commerce. Despite the headwinds, the stock looked bullish on the charts at $24.60 at that time, but then COVID-19 and the economic downturn have combined to push it down to $15.80 as of October 12, 2020. Despite the bullish charts in December 2019, my recommendation was to avoid investing in it and play it as a tradable stock.
Well, 2020 is about to end soon, and thank heavens for that – and I guess it’s time to analyze STWD’s prospects