Part 7/15:
The conversation bridges the gap between stock market performance and real estate. Melody warns that if equities continue to decline—particularly given their inflated valuations related to AI bubbles and speculative trading—the wealth effect will evaporate, leading to markdowns in all sectors, including high-end properties.
She notes insider selling and warning signs from institutional investors suggest that the wealthy are already pulling back, foreseeing trouble ahead. As the stock market and credit tighten, luxury homes and speculative investments will face significant price corrections.