Tariff Talk 📣…

Hey there,

Yesterday was the day… for tariff announcements, that is.

Now, we’re not here to tell you whether tariffs are “good” or “bad.” Labeling anything with such vague language is foolish, plays into emotion, and is ultimately not useful for making remunerative decisions. We’re here to make money and play the investing game with the cards we’re dealt.

However, this much is true:

The BIG winner from yesterday? Multifamily.

If you watched the debt markets, you likely saw what we saw: a “flight to safety” that drove bond prices up and yields down.

That makes borrowers of debt (i.e., us) winners, as it eases some of the pressure from high interest rates.

See below.

Cheaper debt—should rates fall further and stay down—would benefit our existing portfolio from a refinancing perspective, potentially becoming very lucrative for assets we’ve acquired over the last two years.

In the short term, it could also make new acquisitions a bit easier, at least until pricing expectations from sellers possibly push higher.

It’s in that pricing discrepancy where “quick” money can be made in investing. Sometimes, this is referred to as volatility. “Quick” is also a bit misleading, as you have to be positioned to take advantage of the situation. In our case, that could mean buying a property two years ago and paying close enough attention to spot that mismatch.

What about the stock market?

If you read our newsletter consistently you would’ve gotten an email from us in December talking about “frothy valuations”.

Certainly, wide-sweeping tariffs such as the ones announced yesterday would have a negative impact on stock valuations.

That said, the risk of a tangible pullback in the market was already very likely given the prior valuations. The question to which we don’t have an answer is how far will stocks fall in price going forward.

Best approach going forward

While the news has a lot to talk about and there are more than enough opinions going around. The best approach is to wait, see, and reevaluate.

The “stock market” is comprised of 4,000 companies. Some are winning, some are losing. Narrow down investment decisions from broad to specific just like we look at multifamily properties one by one, not just the vague “multifamily market”.

Figure out how to win!

Nate & Steven
Rust Belt Capital, LLC

www.rustbeltcapital.com

_Disclosure:
Rust Belt Capital, LLC is not a Registered Investment Advisor. Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Rust Belt Capital, LLC does not provide tax advice and does not represent in any manner that any outcomes described herein will result in any particular tax consequence. This is not an offer to buy or sell any security. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees, and expenses. Prospective investors should consult with a tax, investment, or legal adviser before making any investment decision. Distributions or profitable investments cannot and are not guaranteed. Not intended to be tax advice and should not be solely relied upon to make an investment decision.