Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.
On Wednesday, June 9, GOP group leader Senator Shelley Moore Capito announced they were ending negotiations on President Biden’s trillion-dollar infrastructure spending bill. Despite this standstill, many investors remain fearful of what this bill could mean for the economy, property values and assets. To help gain a better understanding of this matter, America’s Voice Live (AVL) turned to Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.
While the spending plan is poised to have numerous implications on investors across the country, Sawchuk believes that a housing crash is not likely one of them.
“I don’t think you’re going to see a housing crash,” he tells AVL’s Tudor Dixon. “I think interest rates are going to stay low because the Fed is boxed into a corner and they have to keep interest rates low.” Sawchuk also believes that the current valuation increases in the housing market are not a boom, but rather a temporary dislocation stemming from COVID-19 and disruptions in the supply chain.
However, there is one area that will likely face repercussions from the bill: asset prices.
“I think the rule of thumb here is as the Fed balance sheet continues to increase, likely asset prices are going to continue to go up,” explains Sawchuk. “So, the savings that you have, you can’t put it in a bank and you can’t put it in a money market account… The equity markets are, quite frankly, the only place you can put money right now and earn enough of a return to outpace both the inflation we’ve just been discussing and potentially higher taxes, and I think that trend is going to continue.”
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