When trade war tensions between the EU and the US jumped last week, I knew it was time to publish a podcast episode I’d done with Mark Robinson (EnCor Wealth Management). His clear-eyed views on the big picture have obvious implications on the niche market of CE commercial real estate.
The issue isn’t whether this or that tariff is justified, he argues. The problem is elsewhere.
“You’re destabilizing currency markets, you’re destabilizing government bond markets, you’re destabilizing credit markets, you’re destabilizing equities. In doing all of that, you’re upending financial modelling to a certain extent. And that then does affect real estate investment.”
“This risk-free rate in dollars is becoming unstable. And as it does that, it automatically makes financial markets more volatile.”
But at least he’s got good news for real estate landlords and investors with assets in place.
