This is a common mantra on Wall Street and simply means to align your investments with the current Fed policies and their rhetoric instead of market sentiment or expectations. This is generally said to mean that someone should invest conservatively during rate hikes or higher interest rates and more aggressively during low-rate periods or cuts. Despite the market believing that rate cuts are near, members of the Federal Reserve Board remain hawkish as they have been put between a rock and a hard place. What I mean by this is that, as they continue to raise rates, the likelihood and severity of a potential recession grows, as well as the possibility of further bank failures.

While this is of great concern, the Fed also is well above their target inflation number of 2% and must continue to try to get this under control for domestic consumers, as well as to prevent further erosion in international faith in the dollar, and to maintain its use in international trade. The latter still seems to be more important to the Fed especially as China continues to gain support for the Yuan as a global trade settlement currency alternative to the dollar. Ultimately, market conditions are changing quickly and no one knows how much or how frequently interest rate changes are likely to occur. But real estate, especially in the long-term, continues to remain a good investment whether it is for income potential, a place to hedge against inflation, or for a potentially higher future resale value.