When markets panic, investors who separate long-term trends from short-term noise can buy cheap. Multifamily housing and industrial real estate driven by reshoring will keep growing for decades. A 7-10 year horizon lets you ride out recessions and profit when others sell.
if you can separate out the long-term drivers of demand for, say, multifamily or housing as an example, from short-term recessionary impact or short-term oil impact on the economy, it actually creates a perfect buying opportunity because what happens is a lot of the competitors that are purchasing assets maybe pull back because they're going to go into kind of risk-off assets, but the long-term drivers of demand are still there. And so I think it would only probably want to accelerate the amount of assets that I want to buy because The likelihood of interest rates going down, making it cheaper to purchase, less competition, knowing that if I have a long-term mindset, you know, we're looking at a 7 to 10 year investment horizon in all of our assets. We know that demand is going to drive long-term rent growth and long-term values. And I would definitely be in buy mode even more. On the other side of it, with maybe some of the industrial portfolio, if we do see a recession, that could impact the business cycle probably more acutely than housing demand. And so maybe you see a slowdown of investment of businesses making expansions or hiring more or doing the things that they already plan on. But again, if you have a long-term mindset and understand like an industrial, the long-term drivers of reshoring and nearshoring, which are decades-long transitions of shifting the landscape of industrial, those are still going to be intact. And these kind of opportunities can open up to make good positioning for the long-term trends.
