Two of the most powerful influences from birth to death are fear and greed. We see this in so many arenas of life. Additionally, they are both powerful influences on the business sector. When investing, it would be wise to consider which of the two are influencing business leaders’ decision-making. This leads to more informed investments and a boost to your investment returns.

 

• Market Timing: At Acquisition Consultants (AC), we believe in market timing. Different than the stock market, real estate cycles move very slowly, and they lag the general economy. When the economy is robust, the majority of the business leaders are overly optimistic and near the end of the cycle, they become greedy for more. During recessions, fear takes over and consumes many. For this reason, it is easy to detect if fear or greed is driving the real estate market.

 

• Robust Economies: Take, for example, the frequent commentaries during robust economies. Very few, if any, see risk on the horizon. They look through rose-colored glasses and see no real threat to the ongoing economic engine. You will hear this in a variety of ways: “The amount of newly constructed space is being absorbed in a mere 6.7 months. Although triple this volume of space is proposed, we believe the economy is robust enough to quickly absorb this new space and keep supply and demand in check.”  These are optimistic statements. If already in a great economy, why would one think triple the amount of proposed space can quickly be absorbed during the same economy?

 

• Recessionary Times: By way of contrast, read some of the articles written during the Great Recession. The general consensus was a daunting volume of vacant space which will never be needed again. Fear had taken over and property owners were divesting themselves in a rush. Pessimism grew like a weed as many investors left commercial real estate all together. At AC, we capitalize on these swings. This is where wonderful lucrative investments are found.  When the market gets too aggressive and speculative, you should sell. Conversely, when everyone in the room says, “get out,” the best time to invest has just arrived.

 

• Current Times: The economy has been faltering in 2020. Whether it rebounds after the “COVID-19 Shutdown” or remains shattered by the government shutdown. When recessions arrive, most investors panic and operate out of fear. Similar to those frantic about COVID-19, many investors will panic and lose lots of money.

 

• Be Ready: Stockpile your investment funds. A fantastic time will be here soon. Most will flee out of fear and sell cheap during the recession. And the shrewd investor will make wise investments. Be one of the few who are prepared and significantly grow your investments base.

 

Go All in With Acquisition Consultants

Over the years, AC has created wealth for our clients by strategically investing in response to fear and greed.  We want to urge you to do the same and join us in the next recession.

AC is always busier when the economy fails. During this coming recession, we are “going all in.”  We will invest all of our capital while partnering with an institutional investor. Why would we risk everything we have? Because the fundamentals will be perfect for sound investing.

In the coming months and years, watch for fear and greed. They lurk everywhere. There are many lessons of life hidden around those two powerful influences. However, there is also lots of money to be made there as well!