This is an LFI episode and LFI is now part of PassivePockets.
Join us on this enlightening episode of “Passive Investing from Left Field” as our host Jim Peifer sits down with the renowned economist, Professor Peter Linneman. With decades of experience and wisdom, Peter shares his unique insights on the current economic climate, including the real impact of interest rates, the truths behind inflation rates, and the resilience of the U.S. economy. Whether you’re an investor, an economist, or just curious about the future of the economy, this episode offers valuable perspectives on navigating economic uncertainty and seizing opportunities in the market. Don’t miss Peter’s expert analysis and predictions for what lies ahead. Tune in now!
About Dr. Peter Linneman
Dr. Peter Linneman holds both master’s and doctorate degrees in economics from the University of Chicago. He is the principal of Linneman Associates. For nearly four decades, he has provided strategic and financial advice to leading corporations through Linneman Associates. He provides M&A, analysis, market studies, feasibility analysis to many leading US international companies. In addition, he serves as an advisor to and a board member of several public and private companies. Peter was a professor of real estate at the Wharton School of Business at the University of Pennsylvania, from 1979 until his retirement in 2011. He’s an accomplished author having written books, articles, and of course, The Linneman Letter, a quarterly letter for commercial real estate investors.
Key Points From The Episode:
1. Impact of Interest Rates: Peter Linneman discusses how only about 20% of the economy is directly affected by interest rates, highlighting the outsized impact this has on sectors like real estate.
2. Inflation Rates: Linneman provides a deep dive into the calculation of inflation rates, particularly emphasizing the misconceptions surrounding housing’s contribution to CPI and PCE indexes.
3. Economic Resilience: Despite challenges, Linneman is optimistic about the resilience of the U.S. economy, driven by entrepreneurship and the ability to overcome hurdles.
4. Post-Pandemic Recovery: He points out that the economy is still catching up from the pandemic-induced downturn, with pent-up demand across various sectors fueling growth.
Timestamps:
02:27 His real estate journey
06:22 Do the fed believe they need to create a recession?
10:33 Why the fed looks at the CPI and PCE
17:32 What’s next?
19:41 The cause of inflation
24:26 Are economic cycles gone?
29:22 Unemployment
33:31 Is the fed trying to push for the 5% unemployment?
35:11 Standard economic measures are up, but the Economy is seen as down – why?
39:03 Contact Peter
Resources Mentioned:
Contact the guest:
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