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.
There’s no such thing as a sure thing in investing.
Remember dotcoms, mortgage-back securities, and Bitcoin? Those were all sure things, right? Not exactly. Investors are continually getting burned by the sure thing syndrome, but it doesn’t mean they’ll stop looking for the next big thing.
Investors fleeing Wall Street for less turbulent waters are discovering the world of private investing.
And with the loosening of securities advertising rules and the increasingly growing use of the Internet and social media by entrepreneurs to raise capital, investors are discovering alternative private investing options in greater numbers and variety like never before.