Smart investors are making their money moves before the presidential election. Here’s why and some of the ripe, opportunistic, and value add investments they are looking at.
Action Takers Vs. Procrastinators
While the experienced few are confidently and actively investing, the inexperienced and novice individual investors and funds are sitting on the sidelines.
One of their top excuses is waiting to see what the outcome of this upcoming presidential election will be.
This is one of those pivotal years when wealth is making a major shift from many to even fewer. It is perhaps one of the most pronounced wealth shifts in the last 100 years. Whether this year sets you up for a new period of success and long term gains or sees you spiral in the opposite direction will all depend on what you are doing with your money now.
You are either taking action or procrastinating.
The Election: Fear & Hype
We’re back in that same old news cycle again. Yes, it may feel like things are even more exaggerated this year. Yet, it’s not a new phenomenon by any means.
2020’s presidential candidates may be more polarizing than ever. The media may be even more desperate to get advertisers, viewers, and attention. Though this is the same old cycle of hammering people until they tune out and choose not to vote, or get so engaged by fake news that they actually show up.
The biggest concern isn’t really who wins or not. We understand this can be emotionally stressing for a variety of reasons. Though thinking purely in economic and investment terms, it is this run up period of uncertainty which creates the most opportunities. Partially because it sidelines everyone but the brave smart money who know their cycles.
It’s true that each candidate and political party has a completely different agenda. As such, there can be a huge gap between wanting to accomplish goals on that agenda and actually putting them into place. Nonetheless, we’ll always have to deal with things like changing tax rates and new regulations. That’s just the fish bowl we live and operate in. Fortunately, with four year presidential terms the needle really rarely moves very far in either direction very fast.
It’s the fear out there that is making the real difference. Savvy investors know that this is the most profitable and best time to invest.
Compounded with the usual seasonal dip in real estate prices, the pre-election fall season is the best time to buy assets. There may be a great window to exit some assets after the election and through the first quarter of the year, to all of the novices getting back into the market. The increase in demand, new bullish activity, and competition boost prices again.
With lending contracting, 90% of NYC business unable to pay rent, and shadow foreclosures on the rise, yet construction labor costs declining, the value add opportunistic opportunities in the market now may include:
- Commercial property conversions
- Builder liquidations
- Self storage and valet storage
- Multifamily remodels for the new normal
What are you investing in this week?