It feels like the indicators are in place for an impending recession. Natural cycle of the markets, long bull run, interest rates, etc.
The increase in probability as indicated by the CME Fed watch has moved from 33% to nearly 50% within the last month, as it relates to interest hikes.
How are you planning to mitigate downside exposure and profit off of the impending recession?
Thoughts?
I live in one of the top markets in the US, and it just doesn't seem sustainable. I have actually considered selling my residential real estate and temporarily renting until the market corrects. The behavior in this market is verging on mania. New construction everywhere while construction costs are inflated by demand, and the market has to be nearing it's peak.
I'd bet that there are going to be some decent opportunities to capitalize on real estate in the coming years when consumer access to mortgages diminishes, and those who are in over their heads begin panic selling.
I work with realestate and loan people. They're gearing up for a big year. A bunch of them are selling their own extra stuff. All are expecting interest rates to go back up and for prices to start sliding after next year. It's a good time to get an equity loan with all the prices inflated a little if you need some quick cash to fix up your house and sell it.