U.S. GDP: The Real Estate Economy

26-Feb-2017

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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.







By Macromon, Global Macro Monitor,

Interesting data that even surprised us.  The real estate sector is now the largest sector of U.S. economy.   Real estate is a sub-category of the BEA’s  industry group, Finance, insurance, real estate, rental, and leasing.   Could it be one of the many reasons why a real estate mogul now lives in the White House?  

Some inferences from the data:  1)  the U.S. economy is much more diversified than in 1950 and less dependent on manufacturing.   That can be interpreted as good or bad depending on where you sit;  2)  the U.S. is a FIRE economy.  That is,  Finance,  Insurance and Real Estate,  which now exceeds 20 percent of GDP;   3) Agriculture continues to decline as a share of GDP, which is now only 1 percent of the economy.  This may change as “reefer” legalization becomes more ubiquitous and is counted in the official data;  4)  the Federal government’s role in terms of value added to the GDP is shrinking;  5)  State and local governments have almost doubled their share of output since 1950;  and 6)  Professional and business services have almost tripled their output as percent of the economy since 1950.   There are many more.  You decide and analyze.

One last point.  Real estate is all about leverage and, traditionally, highly dependent on credit and lending.

us-economy-by-sector_tablemanufactuing_real-estate_time-seriesus-economy-by-sector_2015us-economy-by-sector_1950

U.S. GDP: The Real Estate Economy

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