Scott Trench: How I'm Protecting My Money From “Irrational Exuberance”

33 snips

Mar 14, 2025

Amid fears of a recession, Scott Trench shares his strategies for weathering economic uncertainty. He discusses the decline in home prices and the fragile state of commercial real estate. With asset bubbles popping, Scott reveals his portfolio reevaluation and future investment predictions. He explores the impact of tariffs and inflation on the housing market while identifying emerging opportunities in multifamily real estate. Listeners gain insights into navigating the shifting landscape and potential paths to protect their wealth.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Irrational Exuberance 3.0

Scott Trench believes the economy exhibits signs of "irrational exuberance," similar to periods before market crashes.
He references Robert Schiller's book, highlighting overvalued assets compared to intrinsic worth.

INSIGHT

Interest Rate Prediction

Scott Trench predicts stubbornly high interest rates in 2025, barring a deep recession or new Fed chair.
He cites the flat yield curve, indicating market expectation of rate cuts despite current inflation.

INSIGHT

Money Supply Misconception

Scott Trench argues that the money supply (M2) hasn't significantly increased since 2022, contrary to popular belief.
He suggests speculation, not money supply, drives current asset prices, posing a bubble risk.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Stock prices are falling, and Americans are fearful. Tariffs, trade wars, economic tension, and interest rates are putting pressure on asset prices. Commercial real estate has already crashed, but the worst may be yet to come. Home prices aren’t growing; in fact, small multifamily prices may even be declining. What should you do? We can’t provide financial advice, but Scott Trench, CEO of BiggerPockets, is revealing how he’s protecting his wealth in 2025.

A recession could be coming; we’re all aware of that. But what does this mean for real estate, stock, crypto, and gold prices? The “irrational exuberance” bubble seems to have popped after stocks hit wildly high price-to-earnings ratios, Bitcoin soared to six figures, and gold began a massive runup. Things are about to change very quickly.

Scott is putting his money where his mouth is, revealing the contrarian moves he’s making to his portfolio to keep his wealth growing during this increasingly volatile period. He’s giving his stock market prediction, interest rate prediction, and home price prediction and sharing where real estate investors should look for stellar deals as everyday Americans run away in fear.

Find investor-friendly tax and financial experts with BiggerPockets Tax & Financial Services Finder!

In This Episode We Cover

Scott’s exact portfolio allocation: what he’s selling and what he’s holding NOW

The speculative bubble that could be very close to (if not already) popping

Will interest rates rise further despite market volatility?

The biggest buying opportunities for investors to score killer deals on investment properties

The critical risk to index funds that investors MUST be aware of

Could commercial real estate prices crash even more, creating substantial potential margins for investors?

And So Much More!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1095

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

Learn more about your ad choices. Visit megaphone.fm/adchoices