A famous Jew once said, buy when there’s blood streets and he did during the panic following Waterloo to make a fortune. This offer to buy our project is a vulture hoping we are afraid. I lived through many corrections two of which were similar to this and the only time I’d even consider panicking is when there’s a run on liquor stores.
I can say two things with full certainty! First, asset priced will be higher after this blows itself out—if not sooner. Secondly, I can also say, that on my last visit to the liquor store, there was no sign of limited supply.
Speaking of supply. Supply/demand go hand & hand with fear/greed. Psychologically we’ll get a Pavlovian response from individuals who are now being bled by stock markets. After this black swan event, they will gravitate into hard assets like real-estate to lick their wounds and we will be there to comfort them.
What is even more ideal for our purposes is, going to cash now make absolutely no sense with rates at zero and possible going negative. Investors owning real-estate (or for that matter being in PE like us) is the only alternative for the smart money.
We undoubtedly will get our full or better price on this project. Selling now because stocks are down defies business logic. That’s my two cents.
Happy St. Patrick’s Day ~