Signs of recession are everywhere. These metrics have not been seen in a long time. We are generally conditioned to think of a recession as a negative thing. But frankly, it’s a necessary part of the cycle and as real estate investors we should actually embrace the recession.

Imports to the US are down 7.6% in November from the month of October. That’s a huge decline on the basis of a single month. We have been hearing for months now that retailers ordered too much inventory during the pandemic.

The rise in interest rates means that the cost of carrying that inventory is much higher than forecast at the start of the year.

There is a silver lining in a recession, the market for bonds will have correctly predicted a so-called Fed pivot.


Host: Victor Menasce