I have often asserted that if professional investors have identified a specific issue as a cause for the next financial crisis, it won’t be.
Typically, the events or investments that cause market upheavals are unanticipated and/or unknown. The lack of forewarning is what causes market participants to panic, thereby creating swift and often severe downturns.
Commercial real estate and its related problems is currently being viewed by some as the next issue to cause the markets to head lower.
Here is some food for thought: the markets are anticipating that commercial real estate will be a problem for myriad reasons. These reasons include the inability to refinance and a lack of economic activity.
I would assert that while commercial real estate will not contribute growth in the near future, it will not be the cause of a second leg down in the markets.
