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Some Money Managers Plan Now for Recession Later

Partner CEO Joe Derhake, PE was interviewed by Pensions and Investments about the state of the construction industry. Asked about the risks inherent in hot or overheated real estate markets, Derhake noted that the irony of a recession is that it gets hot before it gets cold. "In construction, a contractor may have a great A team and a decent B team, but the contractor's C team is not very good. In gateway markets, contractors and subcontractors are stretched... They are running more crews and more C teams out in the field, and that creates risk. The time element is also a risk. Contractors are rushing to complete projects for fear that otherwise they will be delivering completed projects in a recession."

Derhake's insights were published in the May 1, 2017 print issue, and the full article can also be accessed online here.