The platitudes of todays equity valuations are making 2000 look like a picnic. Our team is not bearish on the market, we are reasonable. There has to be a point for any prudent investor to take steps to divest risk and rebalance.
Meme stocks are cute and funny. Short squeezing traders are astonishingly arrogant robin hood heroes.
What is not funny is the rampant speculation taking place in our capital markets that have by design, for over 229 years, provided liquidity and created jobs, being turned into a game. This game in effect, is destroying the credibility of the capital markets and is an embarrasment to one of the most respected institutions in the world.
Our thesis on this matter is quite simple. If you are sitting on a 40%+ gain on any asset class, take the gains. Move on. Outside of a bubble of ignorance, gains are generally mutually exclusive to their asset class and cyclical, they do not continue into eternity.
Of note this includes IRAS and 401k's. We are able to provide our strategy to include tax deffered opportunities as well. Call us today to find out more.
That having been said. A total return strategy vs a pure equity capital gain investment can provide balance in the face of extreme intentional volatility.
Risk of capital
Which is worse: the loss of principal or upside potential? This of course, a rhetorical question, both are bad.
We are confident that eventually we will see a massive rotation in the markets. If you sit on the aforementioned gains, they will disappear as a certianty. This necessitates a proactive positive interaction with the markets.
A positive interaction is a total return, equity income strategy.. We provide that through commercial real estate.
Finally, the elephant in the room, inflation
Janet Yellen, yesterday, announced 3% inflation and a clear intention of the fed raising rates.
I think that any reasonable person can take that with a grain of salt, to the downside. It will be worse than that. When all is said and done, the cost of goods and services will greatly exceed a 3% threshold, which is very high.
To counteract this, Our team recommends taking your gains, utilizing the gains, not your principal for a total return strategy.
For example, if we were to have a 500k gain on a 1.5mm portfolio, it would be in fact prudent to take those gains. The advantage of the Cawthon total return solution is not only total return, positive interaction with the capital markets, but also elimination of inflation risk. See below.
As illustrated above, a gain of 500k invested into a total return Strategy with the Cawthon TCO One REIT delivers. It is demonstrative of the power of total return and compounding, vs speculation.
We remain committed to our thesis of intrinsic value oriented opportunities while maintaining preservation of capital.
Our team does not advocate speculation.
We invest, we generate total return,
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 total return are very limited in this environment. Call our team today to discuss available opporotunities.
--
James Fournace II
Account Executive for Investment Sales
"Creating Generational Wealth"
959-245-3023
DISCLAIMER: THIS IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SECURITIES, OR TO SUBSCRIBE TO SERVICES HERIN. THIS INFORMATION IS NOT INTENDED, NOR SHOULD IT BE DISTRIBUTED, FOR ADVERTIZING PURPOSES, NORIS IT INTENDED FOR PUBLICATION OR BROADCAST TO THE GENERAL PUBLIC. ALL THIRD PARTY ANALYSIS GENERATED BY INDEPENDENT CONSULTANT ORGANIZATION(S), IS FOR ‘RISK EVALUATION’ PURPOSES, AND ‘ATTRIBUTION ANALYSIS’ ONLY, NOT ‘PERFORMANCE AGRANDIZEMENT’, AND THEIR ANALYSIS DOES NOT CONSTITUTE ANY ENDORSEMENT OR RECOMMENDATION. TCO ONE REIT MAY OR MAY NOT USE BACKTESTED PERFORMANCE DATA IN ITS PERFORMANCE REPORTS TO ASSIMILATE PAST PERFORMANCE PRIOR TO ASSETS UNDER MANAGEMENT. THIS DATA IS NOT AIMR COMPLIANT. THE SOLE PURPOSE FOR ITS INCLUSION IS TO LOWER PERFORMANCE EXPECTATIONS, EXPLAIN THE POTENTIAL FOR SOME SIGNIFICANT LOSS, AND BETTER EXPLAIN THE RELATIVE VOLATILITY OF THE RETURN STREAM, OVER TIME. THIS PERFORMANCE DOES NOT REPRESENT THE RESULTS OF ACTUALTRADING USING CLIENT(S) ASSETS. PAST PERFORMANCE IS NO INDICATION OF FUTURE RESULTS. TCO ONE REIT (AND/OR ITS REPRESENTATIVES) DOES NOT DISCLOSE ANY CONFIDENTIAL INFORMATION ABOUT ITS CUSTOMERS OR FORMER CUSTOMERS TO ANYONE EXCEPT AS PERMITTED BY LAW, AND UNLESS AUTHORIZED BY SAME.
Comments