On Fox News Sunday, Muhammed El-Arian, the Former head of Pimco and current chief economist at Alliance, stated very clearly that valuations were at a tipping point. He also stated that inflation is a supply side issue, not a demand issue.
“Waves break at some point.” That is a key statement.
On Friday, the New York Times quoted the Commerce department stating that residential rent since January has risen 16.4% while the CPI (Consumer Price Index) measure of that same number has risen 0.5% this month alone.
On top of that Monday morning WTI Oil futures are trading at 82.00 per
barrel and set to rise even more on a combination of supply constraints and demand increases.
All the while Janet Yellen admitting that inflation will stay well above 5% until at least 2nd quarter of 2022. So, we can take that with a grain of salt.
As prudent stewards of capital, we would be remiss to our clients and friends if we did not have a discussion as to what this means to you.
Inflation is real, and at a minimum it is intermediate, not transitory, whatever that actually means. Even some of the “well regarded” people at Treasury are now admitting this.
Stocks, ladies and gentlemen, cannot trade at 30 to 40 times earnings in perpetuity. This cannot go on forever, and as stated above by El-Arian, waves eventually break.
The fact is, in an environment where the rise in inflation does not have a determinable conclusion, and valuations of stocks are not realistic, there is a question to ask.
As a prudent steward of your own family's capital, does it not make sense to examine options?
Our recommendation is simple, take some off of the table. Do not hold gains only to watch them disappear.
All of the data above are favorable for REITS! Invest in an opportunity with The Cawthon Organization. We are non-correlated to the equity or bond markets, and provide a substantial yield through ownership of commercial real estate.
Investing with us provides a consistent return backed by decades of experience and results, creating generational wealth for your family.
Inflation and market risk is real, substantial and staring right at you.
Do not lose the opportunity to proactively protect the assets you have worked so hard for.
The Cawthon TCO One REIT fits that reallocation.
The Cawthon TCO One REIT offers you the ability to obtain an inflationary and non-correlated market hedge at 21%. That translates into 15.50% post current inflation. If you have a qualified portfolio, and allocate a minimum of $25k , you have potential 15.5% 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.
As we have advocated previously, if you have enjoyed a significant capital gain as most investors have, consider the following:
The Cawthon Organization bases our entire investment thesis on the following:
1) A principal focus on capital preservation, we cannot make money on capital lost.
2) 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.
3) Our capital gain thesis is based upon purchasing discounted assets, thus greatly increasing our upside potential, simultaneously reducing downside risk.
4) Low Correlation to the capital markets Reduction of entire portfolio volatility.
5) Tax Advantages
6) Extremely competitive yield and capital gain
7) 1031 exchange opportunities for rental properties
8) Buy low and sell high through timely, discounted acquisitions
9) Substantially greater passive income: 21% TCO ONE / 3.5% Public
We are here to help you protect your upside that you have worked so hard for contact us today to find out how!
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 opportunities.
--
James Fournace II
Managing Director 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