$60 trillion in alternatives by 2032?
You read that right.....gulp! That is an eye-watering number, but Bain & Company suggests it in its recent analysis, "Avoiding Wipeout: How to Ride the Wave of Private Markets." They say: Wealth and asset managers are now favoring private markets because the business models that have dominated asset management for years have nearly run their course,” said Markus Habbel, global head of Bain’s Wealth & Asset Management practice. Private assets constitute a much larger market than public assets and offer potentially higher yields, diversification, and in cases such as real estate—a hedge against inflation. Our research shows there ...
What Are Alternative Investments? Definition and Examples
CalTier does not provide investment advice. This is purely for informational purposes only.Alternative investments have the capability to offset market volatility and inflation by diversifying your portfolio beyond traditional investment classes like stocks and bonds. While they come with risk like any investment, alternative investments aren’t tied to the performance of the stock or bond markets, so they’re especially attractive during times of increased market volatility. In this article, you'll find: The definition of alternative investments Types of alternative investments The pros and cons of alternative investments How to invest in alternative investments Tax implications What Are Alternative Investments? Alternative ...
Portfolio Allocation – Why Alternative Investments?
According to this Fidelity research report, "Institutions have historically held higher average allocations to alternatives than advisors (23% vs. 6%).". 23% to 6%, that's a massive difference. They go on to say some of the reasons why "....given barriers to entry such as manager access, perceived costs, liquidity considerations, and high investment minimums." So why do institutions tend to invest more in Alternative Assets like real estate? Here are a few typically agreed reasons to consider: Low Correlation with Traditional Assets Alternatives often have a low correlation with standard asset classes like stocks and bonds. This means their performance doesn’t ...
Multi-Family Real Estate as a ‘Hedge’ Against Inflation?
As we are all aware, inflation can erode the purchasing power of money over time, leading to a decrease in the value of traditional investments like stocks and bonds. There is no perfect way around inflation; however, multi-family real estate has shown over the years to be a comparatively resilient asset class in times of rising prices. Here are a few reasons why: Rental Income Growth: Inflation is often accompanied by rising rent growth, which works in favor of multi-family investors and owners. As the general price level increases, property owners can adjust their rental prices accordingly, boosting their cash ...
CalTier’s latest investment with our real estate partner, Midway
Avenue Grove, a 270-unit apartment complex in Houston's most active urban greenspace with a globally recognized park. Learn all about this asset and how Midway got involved by clicking below: https://vimeo.com/815758664 If you want to see the whole interview you can click here. About Midway Midway is an investment company based in Houston, Texas. Midway has been in business for over 50 years with extensive experience in multi-family, hospitality, office, retail, industrial, and more recently, creating revitalized mixed-use districts. With much of Midway’s leadership being born and raised in Houston, Midway has a strong connection to ...
Do you have the Right Mindset for Investing in Alternative Assets?
Last week, I began the CalTier series with “Are Alternative Assets right for your portfolio?” with the premise that the average investor misunderstands alternatives. Rightly or wrongly, they may be hesitant because of potential risks, illiquidity, or lack of access or understanding. This week’s article will address a more basic fundamental, yet perhaps the biggest challenge for both the investor and the Advisor, which is the mindset. In my 30+ years of working with investors, I have learned that most, if not all, investment decisions are made emotionally, not logically. Early on, I remember presenting the new Merrill ...
