The real estate market assumes a pivotal role in the economic landscape, affecting not only the financial well-being of homeowners but also the stability and growth of the entire financial system. However, the industry has experienced significant shifts in recent years, revealing vulnerabilities that could have far-reaching effects on the broader economy. In this episode, Rusty talks with Marc Pfeffer, Director at the Imperial Fund and Co-Founder of M2M Capital. Marc has more than 35 years of experience in the investment management industry. Before co-founding M2M Capital, Marc was the managing director of S64, focusing on private markets capital raising by connecting alternative managers with asset managers, insurance companies, pensions, endowments, foundations, and wealth managers. Marc joins Rusty to discuss the potential scenarios and risks in the residential real estate market. With extensive experience in the real estate industry, Marc explores the current state of the housing market, its vulnerabilities, and its potential impact on the economy and financial markets.  Key Takeaways [02:51] - Marc's professional background. [04:12] - Marc's endeavor beyond the workplace. [05:05] - How Marc defines risk. [06:58] - The current state of the housing market. [08:58] - The vulnerability of the residential real estate market. [11:21] - Marc's take on the bond market, mortgages, and inflation. [16:17] - The most effective way to invest in real estate today. [17:28] - Marc's view on the future of the overall economy. [21:35] - How the government can address the housing crisis. [24:11] - Rusty's base case scenario and Marc's response. [26:37] - Marc's base case scenario for housing prices and market impacts. [35:32] - Marc's thoughts on Rusty's bad-case scenario. [39:28] - The other risks Marc sees in the current economy. Quotes [10:53] - "It's very difficult to say what a true housing market is because there's virtually no inventory." ~ Marc Pfeffer [22:03] - "If you want to get inventory up and get people to move on to housing, you treat your mortgage as an asset, almost taking it and making it portable." ~ Marc Pfeffer [31:03] - "Stocks can do well without housing, but the economy is very difficult to do well without housing." ~ Marc Pfeffer Links  Marc Pfeffer on LinkedIn Imperial Fund M2M Capital My Way by Frank Sinatra Goldman Sachs S64 Capital J.P. Morgan Portfolio Risk Analytics | Orion Risk Intelligence Connect with Us Meet Rusty Vanneman, Orion's Chief Investment Officer Check Out All of Orion's Podcasts Power Your Growth with Orion Disclosure Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use. 2676-OAT-9/25/2023

SHOW NOTES

The real estate market assumes a pivotal role in the economic landscape, affecting not only the financial well-being of homeowners but also the stability and growth of the entire financial system. However, the industry has experienced significant shifts in recent years, revealing vulnerabilities that could have far-reaching effects on the broader economy.

In this episode, Rusty talks with Marc Pfeffer, Director at the Imperial Fund and Co-Founder of M2M Capital. Marc has more than 35 years of experience in the investment management industry. Before co-founding M2M Capital, Marc was the managing director of S64, focusing on private markets capital raising by connecting alternative managers with asset managers, insurance companies, pensions, endowments, foundations, and wealth managers.

Marc joins Rusty to discuss the potential scenarios and risks in the residential real estate market. With extensive experience in the real estate industry, Marc explores the current state of the housing market, its vulnerabilities, and its potential impact on the economy and financial markets. 


Key Takeaways

  • [02:51] - Marc's professional background.
  • [04:12] - Marc's endeavor beyond the workplace.
  • [05:05] - How Marc defines risk.
  • [06:58] - The current state of the housing market.
  • [08:58] - The vulnerability of the residential real estate market.
  • [11:21] - Marc's take on the bond market, mortgages, and inflation.
  • [16:17] - The most effective way to invest in real estate today.
  • [17:28] - Marc's view on the future of the overall economy.
  • [21:35] - How the government can address the housing crisis.
  • [24:11] - Rusty's base case scenario and Marc's response.
  • [26:37] - Marc's base case scenario for housing prices and market impacts.
  • [35:32] - Marc's thoughts on Rusty's bad-case scenario.
  • [39:28] - The other risks Marc sees in the current economy.


Quotes

[10:53] - "It's very difficult to say what a true housing market is because there's virtually no inventory." ~ Marc Pfeffer

[22:03] - "If you want to get inventory up and get people to move on to housing, you treat your mortgage as an asset, almost taking it and making it portable." ~ Marc Pfeffer

[31:03] - "Stocks can do well without housing, but the economy is very difficult to do well without housing." ~ Marc Pfeffer


Links 


Connect with Us


Disclosure

Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.


2676-OAT-9/25/2023

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