RISK vs. REWARD
The consideration of risk versus reward is being re-defined amidst the pandemic. As real estate appraisers, each time we attach a value to an income stream we determine value against the relationship between risk and reward. If COVID-19 stays or perception lingers of new potential threats than the notion of normal will clearly be re-defined and have more of an impact on risk. If however there remains a likelihood of a vaccine as is the case now, than we go back to a guarded form of normal. The Economist recently published an article on COVID-19 on the presumption that the virus would stay and some of the adjustments to the new normal.