Leaning In Boom, Bust, or Balancing Act? 2025's Economic Outlook
May 30, 2025
Terry Montesi chats with Peter Linneman, a distinguished economist known for his expertise in real estate and economic trends. They explore the uncertainty of the current economic climate and its effects on investment decisions. Peter reveals the complexities of tariffs, detailing their dual effects on inflation and GDP. The conversation also delves into the multifamily housing shortage, unpacking its causes and consumer impacts. Finally, Peter shares insights on cautious yet strategic real estate investment approaches amid market volatility.
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Episode notes
Uncertainty Is Ever-Present
- Uncertainty is a constant throughout history, often overstated in modern times.
- Focusing too much on short-term unpredictable events distracts from long-term investment fundamentals.
Accept Political Reality
- Avoid focusing on political chaos as unique or unprecedented.
- Accept that no policy you like is guaranteed; voting is your main influence.
Tariffs Are Taxing Growth
- Tariffs act like taxes that distort economic activity and reduce growth.
- While moderate tariff increases impact the economy modestly, large hikes would significantly hurt GDP and raise inflation temporarily.