SAN DIEGO—The electorate is not focused on the quality-of-life issues that investors are focused on, and their willingness to accept campaign rhetoric focused on other matters is a concern, the London Group's principal Gary London tells GlobeSt.com. London recently reflected on how electing a new president might impact the national economy and business. We spoke exclusively with London about what real estate investors' strategy should be in light of the election.
GlobeSt.com: With the election coming up, what should real estate investors' strategy be amongst so much uncertainty?
London: Sensible people should recognize that campaign hyperbole is all designed to move votes, not assets. Elections are designed to foster uncertainty. The best advice I can give to investors is not to get rattled, to mostly stay the course. And to pay more attention to normal economic indicators and opportunities than to short-term political events.
Having said that, we are well into a very long cycle of prosperity. Investors should be focused on not overpaying and putting away some chips for opportunities that might come later. I always tell my clients that you make your money when you buy, not when you sell. Buy right, at the right price and at the right time. The present low cap rate environment is neither of those.
GlobeSt.com: Should the election and its outcome play any role in their planning strategy?
London: Not much. There is always the outlier that some event will occur that will rattle the world, such as a terrorist attack. But that is, again, a short-term issue from an investment standpoint and actually tends to bolster the US as an investment sanctum relative to the remainder of the globe. A Trump election could cause longer-term economic disarray. But I think that there is plenty of time for investors to plan a strategy, should that be the election outcome.
GlobeSt.com: What else should they be aware of with regard to the election?
London: My deeper concern is the complacency of the electorate, of which investors are certainly a part. While this election seems to be just about the opposite—“We are not going to take it any more”—what really concerns me is the willingness of the electorate to accept campaign rhetoric focused on matters other than what investors are focused on. Investors are focused on quality-of-life issues including technology, environment/global change, feeding our people, healthcare breakthroughs and rebuilding our cities. Neither campaign is talking up those same issues. It's like we are living in parallel universes. Nevertheless, it is those issues with which our next president will have to grapple—not immigration, nor walls nor even terrorism.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
SAN DIEGO—The electorate is not focused on the quality-of-life issues that investors are focused on, and their willingness to accept campaign rhetoric focused on other matters is a concern, the London Group's principal Gary London tells GlobeSt.com. London recently reflected on how electing a new president might impact the national economy and business. We spoke exclusively with London about what real estate investors' strategy should be in light of the election.
GlobeSt.com: With the election coming up, what should real estate investors' strategy be amongst so much uncertainty?
London: Sensible people should recognize that campaign hyperbole is all designed to move votes, not assets. Elections are designed to foster uncertainty. The best advice I can give to investors is not to get rattled, to mostly stay the course. And to pay more attention to normal economic indicators and opportunities than to short-term political events.
Having said that, we are well into a very long cycle of prosperity. Investors should be focused on not overpaying and putting away some chips for opportunities that might come later. I always tell my clients that you make your money when you buy, not when you sell. Buy right, at the right price and at the right time. The present low cap rate environment is neither of those.
GlobeSt.com: Should the election and its outcome play any role in their planning strategy?
London: Not much. There is always the outlier that some event will occur that will rattle the world, such as a terrorist attack. But that is, again, a short-term issue from an investment standpoint and actually tends to bolster the US as an investment sanctum relative to the remainder of the globe. A Trump election could cause longer-term economic disarray. But I think that there is plenty of time for investors to plan a strategy, should that be the election outcome.
GlobeSt.com: What else should they be aware of with regard to the election?
London: My deeper concern is the complacency of the electorate, of which investors are certainly a part. While this election seems to be just about the opposite—“We are not going to take it any more”—what really concerns me is the willingness of the electorate to accept campaign rhetoric focused on matters other than what investors are focused on. Investors are focused on quality-of-life issues including technology, environment/global change, feeding our people, healthcare breakthroughs and rebuilding our cities. Neither campaign is talking up those same issues. It's like we are living in parallel universes. Nevertheless, it is those issues with which our next president will have to grapple—not immigration, nor walls nor even terrorism.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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