Insights from my blog
Why Should You Consider Private Equity Real Estate Investments In Your Portfolio?
"Alternative investments are essential for a balanced portfolio. More and more investors are shifting to alternatives to boost returns, generate income, provide diversification from traditional investments and achieve their goals."
Cynthia Aasen
Registred Dealing Representative
Alternative investments are financial assets that do not fall into the traditional categories of stocks, bonds, or cash. Examples of alternative investments include real estate, private equity, hedge funds, commodities, and derivatives. These types of investments may be less liquid and more difficult to value than traditional investments, and as such, they are often considered to be higher risk. They are also not as regulated as traditional investments, and they are often only available to accredited investors.
Private equity real estate can take many forms, such as the purchase of commercial properties, residential properties, or real estate-related companies, and can include a wide range of strategies and asset types, from core assets to value-add, and opportunistic ones.
Why Should You Consider Private Equity Real Estate Investments In Your Portfolio?
There are several reasons why an investor may want to consider alternative investments as part of their portfolio.
Diversification: Including alternative investments in a portfolio can help to diversify the overall investment mix, which can reduce the overall risk of the portfolio.
Potential for higher returns: Some alternative investments, such as private equity or hedge funds, have the potential to generate higher returns than traditional investments.
Inflation hedge: Alternative investments such as commodities and real estate can act as a hedge against inflation as their value may increase with inflation.
Low correlation: Some alternative investments have low or negative correlation with traditional asset classes, which can help to smooth out the overall portfolio returns
It is important to note that Alternative investments are not suitable for every investor, may have higher risk and come with other associated risks and costs, It is important for investors to conduct their own research and understand these risks before investing in alternative investments. It is also important to work with a financial professional to ensure that any alternative investments are appropriate for your overall investment strategy and risk tolerance.
What causes stock market volatility?
Stock market volatility is the fluctuation in the price of a stock or a market index, such as the S&P 500, over a certain period of time. There are several factors that can cause stock market volatility, some of which include:
Economic indicators: Positive or negative economic indicators, such as gross domestic product (GDP) growth, employment data, and inflation, can influence investors’ expectations of future corporate earnings, and therefore, stock prices.
Interest rates: Changes in interest rates can affect the cost of borrowing for businesses and consumers, which in turn, can impact stock prices.
Political events: Political events such as elections, changes in government policies, and international relations can also impact stock market volatility, as they can cause uncertainty and change investors’ expectations of future economic conditions.
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Licensed as a professional real estate agent for 25+ years, Cynthia’s expertise is diverse – real estate syndication, development, multi-family value-add and strata ownership. Dually registered as Associate Broker with eXp Realty Canada Inc. and Dealing Representative with Integrated Equities Inc. she is able to offer investors access both public and private real estate investments in North America’s leading markets.
Cynthia and her team act as advisors helping you make informed decisions. Since 2015 they have raised over $100 million in limited partnership equity representing $400 million in real estate transactions since inception in 2015. In addition, they sold over 200 individually titled investor properties, offering “true” turn-key solution for active real estate investors – “You invest, we’ll do the rest”.
