Today I want to talk about the new economy we are going to see the next five or ten tears and why this will drive real assets such as land, real estate and precious metals to go up- in my opinion.
There are specific trends happening in the economy.
The continued rise of remote and hybrid work is going to devastate the commercial real estate market. Together with higher interest rates, commercial properties are going to cause a massive spike in delinquencies and defaults as these properties have to be refinanced every few years. Now, there’s a lot to unpack here really. Will we start to see a repurposing of these buildings say converting them from office space to apartments or condos. I personally believe this will have to happen or something like it but right now corporations are beginning to push and push more people back to office and more often. It’s said when the recession really hits, the companies will then have the power and we might see the majority of hybrid work end and remote work end. I don’t believe this will happen personally, I think the cats out of the bag and some people will just refuse to go in. And connecting this trend to silver and gold prices, I think the Federal Reserve will have to pivot later this year with the election.
I also believe we’re going to see a new inflation norm of 3-4 percent and it’s really not going to get a ton of attention. It’s something that is going to make people poorer year after year as real wages won’t keep up. We’ve seen this happening already, but the bottom line is that Federal Reserve is not going to keep raising rates once that political pressure hits and there appears to be a risk of a truly harmful recession. And the fed govt is definitely not going to cut back on spending. In my opinion, all the debt ceiling debates didn’t go far enough to reduce spending.
Now another trend is Off-shoring white-collar jobs. We’ve saw this begin in the 90s really with blue collar jobs. And shipping more jobs overseas is terrible for the average American. Politicians and economists will point toward things that have benefited from off shoring. They point toward things like stock prices and low unemployment. But these measures don’t tell the whole picture, stock prices benefit corporate executives as they are reducing costs and jobs. Its riskier for the average American as if one of these overseas operations shuts down or if there is geopolitical tension, the consumer bears the risk. For example, take something like medicine, if a foreign company decides to halt American operations, many Americans might not be able to get their medicine. And this can be said true of other things like microchips.
The New Economy is going to be coming here soon. In fact, many aspects are already here. I believe the changes are going to bring more people to realize they need to take control of their finances and that the old ways of investing won’t work.
