Happy talk from Washington, consistently low unemployment, and a slowing pace of inflation have combined to support a positive market sentiment – but can it last? ‘Shark Tank’ star Kevin O’Leary believes it won’t, and he does not hesitate to list the headwinds that could bring ‘real chaos’ by the year’s end.
The key factor is higher interest rates. The Federal Reserve has already pushed rates up to their highest level in over 20 years, and the repercussions are spreading. O’Leary takes special care to point out the effects on the commercial real estate market, where the increased rates imply that commercial mortgage loans – of which $1.5 trillion is due to turn over in the next few years – will refinance at nearly double their current interest rate.
With already more than $64 billion in troubled commercial real estate assets, O’Leary also notes that commercial mortgage delinquencies were up to 3% by the end of 1Q23. Additionally, small businesses, constituting…
2023-08-28 19:17:50
Source from finance.yahoo.com