Currently, economists appear to favor investments in US 10-Year Bonds and Real Estate. The US 10-Year Bonds are viewed with cautious optimism, particularly as they respond to economic conditions and the yield environment, especially following recent market changes. On the other hand, Real Estate is seen as a solid long-term investment, with analysts highlighting its potential for appreciation and stability as a hedge against economic downturns. This preference reflects a broader sentiment towards securing reliable returns in a potentially volatile market environment.
The speaker believes in the long-term value of real estate, particularly in a scenario where the economy softens. They are optimistic about the potential appreciation in property value, especially with a strategy that anticipates significant returns.
The recent 20-year bond auction came as a shock with a high yield due to the Moody's downgrade. Concerns persist about future damages to small and medium businesses from high treasury yields and potential layoffs.