It wasn’t that long ago that a pension manager explained he had bought more commercial real estate for the fund because “real estate always goes up.”
Then COVID-19 hit.
Flyover states became more attractive.
And unlike New York under Mamdani, those states welcomed businesses. Now, commercial real estate in New York City is a disaster. To boot, that pension manager sold an S&P 500 investment to raise money for real estate.
These are the people managing money for retired teachers, police officers, and firefighters. You really can’t make it up.
Now, the big shots are trying to unload private equity and credit “investments” they thought “couldn’t miss” but in fact are badly underwater. That loud sucking sound you hear is the sound of prices and buyers vanishing down the drain.
And so, guess what? They want to unload this crap into your 401(k) or your kids’ 401(k)s. Not cool. Pay attention here.
What never ceases to amaze me is how, in everyday life, investors would never allow themselves to be taken to the cleaners like this.
But when it comes to money, something happens. Investors get blindsided by reckless investments. You know, the “can’t-miss opportunities.”
They can’t miss until they do.
Action Line: Don’t be blindsided. When you need advice, email me at ejsmith@yoursurvivalguy.com.
Originally posted on Your Survival Guy.