''Sternlicht, who's been calling on the Federal Reserve to cut rates for months, expressed optimism that the recent weak jobs report that spurred a stock selloff would finally push Chairman Jerome Powell to make a rate cut at the Fed's meeting next month.   “This is the emperor has no clothes,” Sternlicht said. “You've seen that this economy is super narrow, the GDP is being driven by data centers and spending on stuff that the average person doesn't feel. They don't feel like the economy is working for them.” The AI excitement seemingly has already begun to cool, with the tech-heavy Nasdaq stock index falling into correction territory last week. Sternlicht said Tuesday he expects investors who abandoned real estate during the pandemic will come back to the asset class, particularly multifamily and hotels. Real estate has “obviously got a different risk profile than some new chip that may or may not live forever, or get taken down and go the way of the dodo bird,” Sternlicht said on the call.  Sternlicht said the increased odds of a rate cut means the commercial real estate sector could be about to turn a corner.  “For the first time, we can see the sun and the clouds breaking apart,” he said. " https://lnkd.in/gyrxHUMy