Call it the Running of the “conservabulls.”
Joseph Sitt, head of Thor Equities, employed the term on Bloomberg TV on Wednesday, referring to investors who are looking for a safe place to park their cash.
Sign up for China Watch for weekly emails on Chinese real estate investments.
“What they are looking for is, ‘How can I invest my money and be a bull but, at the same time, be safe?'” he said. “I would liken them to tourists. Folks like cities to invest their money that have less exposure.”
He said the threat of terrorism or the “Game of Thrones kid” running North Korea has people careful about where they choose to invest. Even President Donald Trump poses a potential “global shock risk,” he said.
“Donald Trump put a little fear. What’s he going to tweet at 8 a.m. on Sunday morning?” he joked. “That concern makes people become what I call conservabulls.”
Madrid, Milan and New York City are probably the safest bets, Sitt said. He cited HNA Group’s $2.2 billion contract to buy 245 Park Avenue.
“If I’m HNA, do I like the second-tier markets in the United States? Yes, I love them, but I’m sort of thinking to myself, ‘yes I love it but I also want to sleep at night,'” he said.
Sitt is having a bit of trouble with some of his New York assets. Vacancies at retail properties like 597, 590 and 530 Fifth Avenue could mean foreclosure for his loans, Crain’s reported. [Bloomberg] — Kathryn Brenzel