Hidden Inflation Rears Its Head in Housing
Nick Halaris, president of Metros Capital, returns to Real Vision to give an update of the real estate market — from the boom in residential housing to the struggles of impaired commercial properties. In this interview with Real Vision’s Jack Farley, Halaris attributes the surge in housing prices to a hidden form of inflation that is not captured in the Consumer Price Index (CPI) and that is facilitated by quantitative easing from central banks, a process that he terms “quantitative transmission.” Halaris explains why he thinks gold and Bitcoin will triumph over bonds in this inflationary environment and shares the generational importance of these assets. Lastly, he breaks down the prospects as he sees them of commercial properties such as malls, hotels, and offices. Filmed on April 14, 2021.
Key learnings: The pandemic has caused a paradigm shift in how Americans view housing, and as such, Halaris thinks the boom in residential real estate will continue. On the commercial side, Halaris is much more bearish. He thinks inflation will run hot and therefore is highly constructive on assets such as gold and Bitcoin.