The ever-vocal Thomas Barrack of Colony Capital is confident President-elect Donald Trump’s economic plans will spur major economic growth.
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The founder of the Los Angeles-based REIT told Bloomberg that Trump’s policies could spur 4% gross domestic product growth within the next two years, prompting investors to transition out of the bond market and into equities—as evidenced by the massive bond sell-off that occurred following Trump’s victory. On average, economists expect GDP growth of 2.1% through the next two years, Bloomberg reports.
This is not the first time Barrack has voiced his views on economic policies and market volatility likely to impact the economy or real estate sector. Back in August he publicly chastised inexperienced real estate investors, or “amateurs” as he called them, for playing in property investments by pouring money into the industry at high prices and betting on rent increases that may never come.
Since Trump’s surprising win, money managers have been trying to interpret how Trump’s policies will impact business and whether the real estate mogul can deliver on his promises of economic stimulus, tax cuts and infrastructure spending. [Bloomberg]
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