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- Blackstone’s Perpetual Collapse
Blackstone’s Perpetual Collapse
Blackstone’s Perpetual Collapse
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Blackstone has spent years disrupting the housing market at the expense of average ordinary people.
They’ve spent years buying up companies, stripping them for parts, bankrupting them and leaving thousands of employees without jobs.
They’ve been manipulating their housing investments to give the allure of far better returns than they really see.
And over the last 18 months, they’ve seen the world turn against them as light has been shed on all of these monstrous acts.
A year or two ago and most people didn’t know the difference between Blackstone and Blackrock.
But as we go into 2024, it is clear as day that Blackstone’s meteoric rise has turned around and is turning into a slow burning crash.
For well over a year, Blackstone’s flagship investment product, their much revered REIT has been suffering from huge redemption requests.
So many that the firm has had to bolt the doors shut, and refuse investors their requests to get their money back.
And while this is legal according to the nature of this REIT, it is an huge sign of just how bad things are getting for Blackstone.
So where do Blackstone go from here? Well this is where things get really weird…
Because they’re changing tract entirely, trying to switch up their entire business model, target brand new customers, and leave their toxic reputation in the past.
Will it work? That’ll require us to wait a little while longer, but it doesn’t look good for Blackstone.
The millennial pivot
Blackstone have focused on alternative investing for decades, which is the main differentiator between Blackstone and Blackrock.
Blackrock run index funds and ETFs for the most part, whereas Blackstone sell alternative investments like REITs.
And the so called democratisation of investing with the birth of the internet has allowed both of these niches to thrive.
But, Blackstone is suffering from a massive problem, everyone out there who wants alternative investments, already has them.
And so their solution is to target the younger generation, the millennials and even Generation Zs who are starting to get into the world of investing.
“A smart move” I’ve heard some critics claim, but that couldn’t be further from the truth…
This new demographic is far poorer than their previous target customers, and far less interested in investing as a whole, and alternative assets too.
Most young people these days are living paycheque to paycheque in our consumer driven economy.
Few have any meaningful cash to be investing away, and those who do have been nigh on addicted to the passive investing revolution that index funds have driven.
But most importantly of all, this younger generation is suffering under the most expensive housing market in the history of mankind.
Never before have people spent so much of their income on rent or mortgage payments, and one of the major route causes of this tragedy is clear as day.
Institutions like Blackstone, buying up property, optimising it for their shareholder value, and disrupting the market.
And this new younger generation that Blackstone is convinced will save their business, just so happens to know all of this!
Blackstone’s fundamental problem with this pivot, is that these supposed knew investors absolutely hate Blackstone.
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