2017 Promises To Be A Risk-Filled Year For Investors, UCLA Economist Said

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Next year could be especially risky for investors — a senior economist from UCLA said caps rates and interest rates will continue to rise and create a risk-filled environment.

David Shulman said cap rates will be higher in six months and much higher in 18 months, pushed forward by the 10-year Treasury that could climb to 3% by the end of next year, GlobeSt reports. This could spell trouble for investors who recently purchased new assets; Shulman said buyers today are being forced to take on more risk than last year.

Additionally, the Fed is expected to continue to raise interest rates after pushing them up 0.25% in December. Capital markets are likely to become more difficult throughout next year. [GS]

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