Purchasing Power
Monetary and fiscal stimulus has been released into this economy during the pandemic. This has clearly had a positive effect on consumer sentiment and the economy in general. The consumer price index, otherwise known as the CPI has increased rapidly since the release of the third stimulus, as indicated in the chart below. Supply remains static while demand is elastic, thus inflation.
Supply and demand dictates that as the CPI rises, so does inflation. Currently inflation is at 2.26%, a relatively rapid rise from just a year ago. This above the FEDS target rate by .6%.
To make the situation even more precarious, the fixed income investor has so few choices in this market to the degree that even the junk bond market is at an all time low on yield. Its difficult to hedge against inflation, rising CPI, and life in general right now.
The stock market has been very bullish, yet in the last two days alone, the vix has risen significantly, indicative of a rise in fear in the market.
What does all this mean to us? Prices are increasing, our need to hedge against that and maintain our purchasing power is critical. Choices are numerous. Some riskier than others.
The Cawthon TCO One REIT offers you the ability to obtain a inflationary and non-correlated market hedge at 21%. That translates into 18.75% post current inflation.
If you have a qualified portfolio, and allocate a minimum of $50k you have potential 21% per year on that allocation. The Cawthon TCO One REIT offers that.
Consider us for a portion of your total return strategy. Our emphasis on intrinsic value through discounted purchases is an assurance that we will provide value to you.
Our 1031 program is an efficient way to diversify a real estate portfolio, defer capital gains, and increase future gains with total return.
Our REIT, The Cawthon TCO One REIT, delivers the following to all investors:
A principal focus on capital preservation, we cannot make money on capital lost.
Our yield is consistent, and conservative, there is simply no way in this market to achieve this level of yield and diversification outside of real estate, we provide both.
Our capital gain thesis is based upon purchasing discounted assets, thus greatly increasing our upside potential, simultaneously reducing downside risk.
Low Correlation to the capital markets Reduction of entire portfolio volatility.
Tax Advantages
Extremely competitive yield and capital gain
1031 Tax Free exchanges
Buy low and sell high through timely, discounted acquisitions
Substantially greater passive income - 21% TCO ONE / 3.5% Public
Our choices for income are very limited in this environment. The Fed will undoubtedly not be raising interest rates anytime soon.
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James Fournace II
Account Executive for Investment Sales
"Creating Generational Wealth"
959-245-3023
james.fournace@cawthonorganization.com
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