Top economist Nouriel Roubini has a message for all New Yorkers who moved to Florida during the pandemic. When it comes to real estate investing, I should have picked the Midwest instead.
Roubini, professor of economics at New York University and CEO of Roubini Macro Associates, correctly predicted the 2008 financial crisis and the pessimism of “Dr. Doom.”
He predicted that the United States would plunge into a deep recession by the end of the year and called those who still believed a “soft landing” was possible.delusional” He also warned A period of “massive stagflation instability” awaits, with “massive bankruptcies and cascades of financial crises” occurring around the world in the next few years.
He recommends real estate as one hedge against inflation, but cautions against climate change.
at Bloomberg odd lots On Thursday’s podcast, he warned: It would be too hot to survive there. ”
“These people are moving to South Florida to start a life, send their kids to school, and start new businesses,” said South Florida real estate agent Bonnie Heatzig. told WABC-TV in New York July 2021.
Florida real estate in the long run
However, Roubini said on the podcast:
“So,” he continued. [which] Essentially Midwest to Canada. Therefore, trillions of dollars in real estate assets will be damaged by virtually global climate change. “
For investors, real estate (albeit in certain locations) is offered as “inflationary, political and geopolitical risk hedging assets” along with short-term government bonds, inflation-indexed government bonds, gold and other precious metals. Still recommended. Environmental destruction. “
Real estate “will be a good hedge against inflation as long as monetary policy is not too tight,” he added. Of course, the Fed continues to raise rates, which has led to poor performance for his REITS this year. But he said, Fed probably “weakening” “We believe real estate will outperform equities in the short term due to its nature as a fixed supply asset.”
But given climate change, “we need to find the kind of investment in the right regions of the United States,” he said.
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