This is the reason players like Black Rock are buying up hard assets like homes, commercial real estate and land. They are liquidating their stock portfolios at the market peak and parking the money in hard assets that will retain a substantial fraction of their value when the market tanks. Others are in liquid assets waiting on the sideline for a market correction. Biden is setting the stage for an epic bout of economic chaos.
“Biden is setting the stage for an epic bout of economic chaos.”
The market is like an airplane shudder just before it stalls and spins.
“They are liquidating their stock portfolios at the market peak “
They were liquidating in 2018.
BX is not the only asset manager holding real estate, but it is certainly the biggest and its been on a buying binge. No doubt about it.
As an asset manager BX illustrates that, going forward, investors might want to consider various, non-traditional asset classes to include in their portfolio. With relatively high market valuations, strong inflation, excessive government spending, balooning debt, international trade issues, etc its going to be a very challenging investment environment for a long time to come IMHO. Invertors are going to have to be nimble.