When you hear real estate mentioned in the News, it’s typically in connection with a discussion of the state of the overall economy and often includes predictions for the next 12 months.
Andrew Lanoie
The coronavirus drove the 3,600 point drop in the Stock Market this week, but it wasn’t the actual effect on the virus, but the fear of its effect that drove the plunge.
As in the case of infection where the body’s response to the infection in the form of fever is often more painful than the infection itself, the same holds true for epidemics and the economy.
The panic and overreaction are often more harmful than the actual tangible effect of the disease on the economy.
Many investors solely focus on home-run investments. They lust over the memes on social media, like:
“If you invested $100 in BigCompany in 2003, today would be worth $9,000,000. Yeah, that looks about right.”
The smartest investors are not those taking the biggest risks or those backing the next biggest social media app. The smartest investors are those that look beyond ROI.
Based on data from the College Board, here is the average annual cost of college education, including tuition, room & board, books & supplies, transportation, etc.:
Public Colleges (in-state): $25,290
Public Colleges (out-of-state): $40,940
Private Colleges: $50,900
That is the AVERAGE Cost for Just ONE Year!
Would you pay your mechanic if he didn’t fix the faulty alternator in your car? Then why are you paying for financial advice?
Financial advisors get paid whether you make money or not. If you make a profit or if you lose money they get paid. That doesn’t sound fair.
Everybody wishes they had the power to predict the future – especially when it comes to the markets. If they could, they’d be rich.
Short of that mystical power, people turn to so-called “investment gurus” for guidance, believing that these self-proclaimed experts have the uncanny ability to predict movements in the market and even specific stocks.
Are you looking for an adrenaline rush or do you want to create lasting generational wealth?
Sticking to what works is generally a sound investing strategy, but that doesn’t stop investors from continually chasing the next big thing. How often have you heard something like this? “If you had invested $10,000 in Apple’s IPO in 1980, your stock would be worth $6,756,400 today.”
As an individual investor, the stock market is rigged against you.
SEC regulations are designed to eliminate any information advantages involved in stock trading. That is why it’s considered an efficient market. All information relevant to the price of a stock is assumed to be available to the public in real-time, eliminating the chances of any investor profiting from any information advantage. And the use of non-public information (insider trading) for profit will send you to jail.
Have you ever wondered why family offices allocate such substantial portions of family portfolios to real estate?
According to The 2019 U.S. Family Office Real Estate Report, a survey of over 200 family offices conducted by Family Office Real Estate Magazine, the most important investment objective for family offices as cited by their directors is the preservation of wealth, followed by income generation and asset appreciation. Given these objectives, it should come as no surprise then that family offices are drawn to the commercial real estate class.
Investors who stay ahead of inflation stand to profit greatly from commercial real estate.
The explosive growth of hedge funds in the 80’s and 90’s coincided with an investing public seeking alternatives to a volatile public market. Hedge fund managers touted their ability to beat the market in any economic environment through complex derivative strategies and mathematical algorithms. Investors were hooked.