A housing crash of 20-40% is coming, says investor who called crypto ‘The Tulip Mania of the 21st Century’ – Peter Grandich
(Kitco News) – Peter Grandich, who correctly predicted the crypto and stock crash, said he expects a major correction in the US real estate market. He suggested that the recent sales of crypto and shares would spread to homes.
Grandich said that the goal, in this market, is to “not try to lose a lot of money,” and warned that real estate “can see a loss of 20, 30 or 40 percent and fairly quickly.”
Grandich spoke with David Lin, anchor and producer at Kitco News.
Crypto and stocks
Equities and cryptocurrencies continue to perform weakly, with the S&P 500 down 18 percent so far this year, and Bitcoin down 53 percent so far this year.
Last year, Grandich issued a warning, saying he “did not want to own any common stock or bonds.” He also called cryptocurrencies “Tulip Mania of the 21st Century”, a reference to a 17th century Dutch bubble that drove the price of tulips to $ 750,000 per bulb.
In response to his predictions, Grandich claimed to have received hate mail.
“In fact, I received a legitimate death threat by mail and telephone,” he said. “We have not gone 180 yet in cryptocurrencies. But I think the worst is over there, and there must be more of a shakeout. It will be survivors, but unfortunately most who saw two thirds of the market go to heaven for money, they will not be able to play again. “
While skeptical of cryptocurrencies, Grandich said the blockchain technology itself is “legit”, and he predicts it will trade in similar patterns to technology stocks.
Property
As a recession approaches and intensifies, Grandich predicts a sharp fall in house prices.
“The negative wealth effect will be the overriding factor that keeps markets on the defensive,” he said. “We see the end of the big bubble in real estate. I think it is [market] we are going to look down the most this quarter compared to other markets. “
He suggested that current property prices are not based on the basics, “according to the old Economics 101 books and us old relics reading them.”
“The only thing I have learned in almost 40 years is that we have a tendency as humans, in all, to go extreme, on one side or the other,” he explained. “We have reached a peak at one end. We are not going to go back to the middle. We have to turn to the other side … It is these points that normally have to be reached.”
To find out Grandich’s advice for protecting yourself against a home crash, as well as his investment philosophy, watch the video above.
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