There are options!
Preservation of Capital gains with competitive total return is possible.
As every market participant is aware, the equity markets have been oddly benevolent the last few years.
Last week, Citigroup published a definitive prediction of a 10% minimum correction in the market this year.
This according to Bloomberg: A 10% pullback in U.S. shares seems “very plausible” with markets balanced on a risk-reward basis, according to Citigroup Inc.’s Tobias Levkovich.
“Our current caution reflects several factors, including ebullient sentiment readings, stretched valuation levels and slipping earnings revision momentum,” the bank’s chief U.S. equity strategist wrote Tuesday. “With limited upside even to others’ bullish targets, a neutral stance is realistic.”
Translation: Valuations are absurd, and we have no idea where the market is going. Take your gains and dont buy anything.
At a minimum, if you have indexed in the S&P 500 you have achieved a stratospheric 18.42% Total Return this year alone! As of Friday. Dividends and Capital Gain.
Now a correction takes 10% off your top line.
Adjusted Return: 16.57%
Now Inflation: (4.5%)
Adjusted Return: 12.07%
Now supply chain risk estimated at up to (6%) of equity performance reduction in the S & P 500
Adjusted Return: 6.07%
This is before taxes in a taxable account!
See where I am going with this?
The good news!
There is a real solution, and it's not crypto or cute meme stocks.
A solution that is not correlated to any of these risks and in fact thrives in challenging market enviroments.
The commercial real estate market, specifically the TCO One REIT, provides a total return solution that can provide both a hedge and total return solution against market risk.
Observe the REIT index performance illustrated below. Source NAREIT
Our recommendation, take some of the house money, generate a total return with those profits and reduce market risk. Stock market gains will be rotated, and it will likely be more severe than the aforementioned in this authors opinion.
Rotation is not defined as a crash, it is a conduction of liquidity. We believe that will be manifested in hard assets and real estate.
If you have substantial gains in the market, or non performing income assets, consider us as an alternative.
Commercial real estate serves as an excellent hedge against inflation and market risk. In an incredibly buoyant market you need a hedge.
Conclusively, if the low interest rate paradigm continues or the Fed tightens sooner than 2023, investors must be proactive.
We provide a solution in both scenarios.
Our REIT provides that opportunity in the following manner.
The Cawthon TCO One REIT offers you the ability to obtain an inflationary and non-correlated market hedge at 21%. That translates into 16.50% post current inflation. If you have a qualified portfolio, and allocate a minimum of $25k , you have potential 16.5% 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 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. We provide the solution
Call us and find out!
Call our team today to discuss available opportuniies.
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James Fournace II
Managing Director for Investment Sales
"Creating Generational Wealth"
959-245-3023
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