The Fed's aggressive monetary policy: could it lead to double-digit real estate losses? In this episode, Justin ad Richard Duncan discuss the potential consequences of the Fed's aggressive monetary policy tightening cycle. Richard compares America's response to other developed countries that are experiencing higher rates of inflation and what investors should be aware of to protect their investments. He provides insight into why the Fed is now being forced to hike interest rates aggressively and how this presents a threat to the economy and affects residential and commercial real estate prices. Let's dive into Richard's wealth of resources to help you stay on top of the ever-changing global economy!
Key Highlights:
[00:01 - 06:05] Opening Segment
• What pulled the economy through what could have been a new great depression
• The economy is now larger than pre-Covid and unemployment is still close to a 50-year low
• Why the Fed is now aggressively hiking interest rates and reversing quantitative easing
[06:06 - 12:22] Globalization Reversal and Inflation
• Globalization has been partially reversed due to Covid lockdowns and Russia's invasion of Ukraine
• How lower interest rates have allowed businesses to borrow and create more jobs
• The combination of stimulus in the US, partial reversal of globalization, and higher prices
[12:23 - 18:19] What Investors Need to Know
• Double-digit declines in property prices are expected in most major cities within the next 6-12 months
• Bridge loans have become increasingly expensive, leaving many investors stuck
• How liquidity in the financial markets is key to understanding asset prices
[18:20 - 21:16] Closing Segment
• Get 50% off Macro Watch with coupon code "BUILDING"
Connect with Richard:
Richard Duncan Economics (Website)
Key Quotes:
"Liquidity in the financial markets is the thing that tends to push asset prices up when it's growing and push asset pressures down when it's contracting." - Richard Duncan
"The 30-year fixed mortgage rate is moving higher and making it prohibitively expensive for people to buy homes." - Richard Duncan
Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.
Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.
Want to invest with us? Schedule a brief call here.
Get in touch: Justin@arealminvestor.com and let me know what topics you’d like me to cover or what guests I should have on.
If you like our content, please give us a rating on the platform you’re listening on!
The Fed's aggressive monetary policy: could it lead to double-digit real estate losses? In this episode, Justin ad Richard Duncan discuss the potential consequences of the Fed's aggressive monetary policy tightening cycle. Richard compares America's response to other developed countries that are experiencing higher rates of inflation and what investors should be aware of to protect their investments. He provides insight into why the Fed is now being forced to hike interest rates aggressively and how this presents a threat to the economy and affects residential and commercial real estate prices. Let's dive into Richard's wealth of resources to help you stay on top of the ever-changing global economy!
Key Highlights:
[00:01 - 06:05] Opening Segment
• What pulled the economy through what could have been a new great depression
• The economy is now larger than pre-Covid and unemployment is still close to a 50-year low
• Why the Fed is now aggressively hiking interest rates and reversing quantitative easing
[06:06 - 12:22] Globalization Reversal and Inflation
• Globalization has been partially reversed due to Covid lockdowns and Russia's invasion of Ukraine
• How lower interest rates have allowed businesses to borrow and create more jobs
• The combination of stimulus in the US, partial reversal of globalization, and higher prices
[12:23 - 18:19] What Investors Need to Know
• Double-digit declines in property prices are expected in most major cities within the next 6-12 months
• Bridge loans have become increasingly expensive, leaving many investors stuck
• How liquidity in the financial markets is key to understanding asset prices
[18:20 - 21:16] Closing Segment
• Get 50% off Macro Watch with coupon code "BUILDING"
Connect with Richard:
Richard Duncan Economics (Website)
Key Quotes:
"Liquidity in the financial markets is the thing that tends to push asset prices up when it's growing and push asset pressures down when it's contracting." - Richard Duncan
"The 30-year fixed mortgage rate is moving higher and making it prohibitively expensive for people to buy homes." - Richard Duncan
Download our FREE ebook, The Definitive Guide To Passive Real Estate Strategies.
Check out our Multifamily Syndication Group, and sign up for our NEWSLETTER.
Want to invest with us? Schedule a brief call here.
Get in touch: Justin@arealminvestor.com and let me know what topics you’d like me to cover or what guests I should have on.
If you like our content, please give us a rating on the platform you’re listening on!