“Housing is the next Nasdaq bubble.”
—Mark Kiesel, Exec. VP, Pimco
Newport
Beach-based Pimco (Pacific Investment Management Co.) is the world’s
biggest bond fund, managing nearly $600 billion in bonds and other
assets.
Chief
Investment Officer, Bill Gross, is often quoted in the nation’s
press and in the Tuesday Report. As a firm, Pimco has been
saying since July that higher interest rates will slow housing.
Executive Vice
President Mark Kiesel, a 36-year-old 10-year veteran at Pimco, is a
little more dramatic in his comments. “Housing is the next Nasdaq
bubble, and it’s not just houses that will be for sale. You’re going
to see financial assets for sale over time, and ultimately corporate
bonds.”
Kiesel’s belief
that the U.S. housing market is about to tank is no glib remark. He
is so convinced of it that he sold his Southern California home last
month, and moved into an apartment. Kiesel says there’s going to be
a flat-to-down market in real estate for the next two or three
years. |
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