Ted Oakley: Fed Rate Cuts Won’t Fix Many Large Problems In US Commercial & Residential Real Estate

Wall St. For Main St., Released on 8/25/24

During this 40+ minute interview, Ted talks about his extensive experience investing in real estate for decades and problems in US residential and commercial real estate that the Fed cutting interest rates by 50-100 basis points will not fix. Ted talks about the how start homes are nearly $500k in many parts of the US and how US stock market indexes and US home prices are juiced by Fed policy of the Wealth Effect or the Cantillon Effect. Ted thanks that many governments and central banks will implement policies similar to mercantilism or “Beggar Thy Neighbor” policies that favor domestic industries and put protectionist tariffs on imports. Ted’s firm, Oxbow Advisors, thinks that many pension funds and regional banks are hiding enormous losses and that there will be more asset volatility in stocks and bonds going forward so they are focused on defensive plays like short term US Treasuries, cash, gold, defensive dividend consumer stocks, energy companies paying dividends and utility companies. Ted also talks about his favorite royalty company.

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Ted Oakley, the founder of Oxbow Advisors and co-founder of its predecessor firm, HPO Advisors, has over thirty-five years of experience in the investment industry. The “Oxbow Principles” and the firm’s proprietary investment strategies were developed as a result of the unique perspective Ted gained throughout his almost four-decade tenure advising high net worth investors.

Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason’s work at his blog website at www.jasonburack.com.

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