Diversifying a Portfolio with Real Estate Investments
Along with stocks and bonds, real estate is an asset class that warrants consideration for inclusion in an investor’s portfolio. Diversified real estate holdings can provide returns that diverge from those of stocks and bonds under various economic conditions, contributing essential non-correlation properties to a holistic asset class mix. In the context of an income-producing portfolio, real estate can provide valuable stable cash flows for distribution and dollar-cost-averaging reinvestment. As this WSJ article notes, we are beginning to see opportunities for investors to purchase real estate investments at prices that are relatively low from a historical perspective, which may provide the potential to realize outsize long-term returns. Investors should weigh this opportunity along with the increased risk and volatility that accompany an economic recession, and make appropriately-diversified allocations accordingly.
Read More On This Subject Here: https://www.wsj.com/articles/real-estate-investors-eye-potential-bonanza-in-distressed-sales-11586260801
