Institutional Investors Sprinting toward Safe Haven Investments
You woke up this morning, as you sip your coffee, your phone starts to ping you….Who is up this early?
Nope not a text….It was a stock alert…The DOW is down 400 points…Another PING! S&P down 1.68%….Panic sets in as you begin trolling through articles to find the cause….
What we are seeing is a Fund Rotation. Institutional Investors are moving away from over crowded tech stocks and moving their capital into Safe Haven Asset and investments. This mass liquidation of Tech such as Apple, Amazon, Google and a rotation into Safe Haven investments such as P&G, McDonalds, J&J, Pepsi and CocaCola.
What is a Safe Haven Asset?
Safe Haven investments are assets that are expected to retain or increase in value during times of market turbulence. Safe havens are sought by investors to limit their exposure to losses in the event of market downturns
A tried and true Safe Haven investment is Real Estate. There are countless reasons Real Estate is a top Safe Haven for more Sophisticated Investors. Here are just a few favorites among them.
- Stabilized Returns: Even when Real Estate markets turn, cash flow remains stable as rents or “dividends” are not reduced based on the asset value.
- Leverage-ability: Sophisticated Investors utilize leverage to maximize profits in their Real Estate investments.
- Safety and Security: Sophisticated Investors know the key to security is holding assets for the long term. This is why Warren Buffet has been so successful over the years, he invests and holds for years…decades…Grande AMA and Associates take this approach to building our portfolios of Real Estate as well as my stock portfolio.
- Superior Tax Treatments: IRS changes in 2018 have created a huge tax advantage for Real Estate owners. Many of the investors we work with will be offsetting large portions of their AGI. Resulting in more cash in their pockets.
This is working smarter not harder….
This is your money working for you instead of you working for your money…
This is passive investing at its finest.
Recently I read a great article that said “Don’t copy mediocre people. Pick only the top 1% — listen, learn, emulate, and shoot your goals higher than the rest.”
When you are ready to talk about adding the safety and security of Real Estate to your Portfolio, click on the link below to schedule a time to chat.
Schedule a Strategy Session with Anne and Check us out my latest podcast!