28 February 2016

Data-Driven? Follow The Money // Fertile Ground For Investment > Hey! Get A Clue: Real Estate


Ever wonder what's pushing property and real estate investments here in Mesa?
Hotels, offices, retail, and apartments? Where does all that BIG MONEY go?
Why isn't it happening more to move investments downtown? [yet] . More "master-planned communities" and retail in the suburbs, sure. Cashing-In and Cashing-Out, sure. Buy-and-sell, again sure. Re-invest and expand business corridors, sure. Retail, hospitality and entertainment . . . How do we get there?
We're talkin' millions + billions + trillions - when Central Banks only offer low or negative rates and worldwide capital is pulling out of stock markets in "a certainly uncertain" and "highly volatile" investment climate.
Some of the answers to that question come from data, and headlines in industry media.

According to a report on Fri 26 Feb 2016 from Bloomberg Business investors  can protect their money in some of these places with advice from a few investment strategists.
Gold
Bullion’s zero yield shines relative to other money-losing assets. Gold is up 15 percent this year at $1,219 an ounce amid concerns that central bankers are losing their grip on the global economy.
While the price of the precious metal can rise and fall in international markets, . . a central bank can't debase it and its purchasing power isn't reduced through inflation. Advice from Axel Merk, president and chief investment officer of Merk Investments LLC, whose fund owns physical gold.
Cash
Despite the naysayers, cash is still king. A Bank of America Merrill Lynch fund-manager survey from earlier this month showed that global investors are sitting on the highest levels of cash since November 2001.
Money-market funds have been a parking spot for most of that cash, but things could get tricky if rates move into negative territory in the U.S.
Real Estate
Another alternative, according to Jeff Sica, who helps oversee $1.5 billion as founder and president of Circle Squared Alternative Investments in Morristown, New Jersey.
U.S. commercial-property prices have surged since the recession, with values in cities such as San Francisco and New York exceeding the 2007 peak, according to an index by Moody’s Investors Service and Real Capital Analytics Inc.
While returns for property owners are at historic lows, they're still much higher than what investors would get from money markets or bonds.


 

 

 

Where Can Investors Hide From Punishing Negative Rates?
A few assets remain safer options as more central banks adopt the unorthodox policy
February 26, 2016 — 10:28 AM MST
http://www.bloomberg.com/news/articles/2016-02-26/where-can-investors-hide-from-punishing-negative-rates

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