Financial and housing market expert Dave Burt, CEO of investment research company DeltaTerra Capital, has issued a stark warning about an impending housing crisis. With a track record of accurately predicting the 2008 housing crisis, Burt cautions that many are underestimating the systemic risks currently brewing in the market.
The perfect storm of economic weakness, higher interest rates, an increased number of homes on the market, and the rising impact of climate-change-related flooding is posing a significant threat. Burt’s expertise enabled him to save millions for the New York-based Cornwall Capital organization during the 2008 crisis, a feat later chronicled in Michael Lewis’ bestselling book “The Big Short.”
Today, Burt raises a red flag, drawing attention to the mortgage market’s oversight regarding the potential consequences of climate-change-related flooding. DeltaTerra’s research reveals that a staggering 20% of US homes have “meaningful exposure” to flooding, significantly devaluing the housing market by approximately $200 billion compared to its 2022 value of $45.3 trillion.
In an interview with CNBC, Burt emphasizes the severity of the situation, stating, “We think of this repricing issue as maybe a quarter of the size and magnitude of the [global financial crisis] in aggregate, but of course, very, very damaging within those exposed communities.” Burt highlights the urgent need for lenders to recognize the potential fallout associated with flood risks to prevent a repeat of the 2008-style price correction.
Burt’s concerns about climate change and flooding are not new. In April, he shared his worries with CNBC, stating, “I’m always on the lookout for these big systemic issues.” As an experienced investor, Burt emphasizes the importance of identifying mispriced assets and protecting clients from undervalued or overpriced investments.
Flooding, being the most common natural disaster in America, poses significant risks to homeowners. Burt points to Hurricane Ian, which caused over $100 billion in damages in September last year, as an example of the devastating impact of climate-related events.
In light of these warnings, it becomes crucial for individuals to consider alternative investment options such as acquiring gold and silver with Quicksilver. These precious metals have traditionally served as safe-haven assets during times of economic uncertainty, providing a tangible hedge against market volatility and potential currency devaluation.
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As Dave Burt reminds us, the cost of maintaining a home and making informed decisions based on long-term stability are paramount. By diversifying investments and considering assets like gold and silver, individuals can safeguard their wealth and protect against potential financial crises.
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