Chairman of the Federal Reserve, Jerome Powell summarized his speech last Wednesday with the following statement.
“If inflation were to move up in ways that are unwelcome, we have the tools for that, and we will use them. No one should doubt that.
"When the time comes to raise interest rates, we'll certainly do that, and that time, by the way, is no time soon.”
On Bloomberg’s Wall Street Week, Larry Summers, the former Secretary of the Treasury, stated the inflation will be persistent, requiring long term tightening and immediate reaction. This means raising rates significantly to temper demand.
Conversely, on the same program, Rick Reider, Head of BlackRock Global Fixed Income, stated very casually that inflation and supply constraints are short term. To repeat an overused term, transitory.
All of this in my opinion, whether structural-long term inflation, or transitory-short term, the causation is clear: supply constraints effected by trillions of dollars of pandemic liquidity injection followed by post pandemic demand.
That having been stated, it is probably prolonged, but not a structural change in the economy, and not structural inflation as a true reality.
Simultaneously, we are all hearing analysts on every network that are bullish on a continuation of today's valuations. Then, the most bearish of them stating we are in a bubble ahead of a massive precipitous decline in the stock market.
In addition, the bond market on every layer of the credit and duration spectrum will be a long term recovery for income investors. It is extraordinarily challenging to find income.
So what does all of this mean to you as an investor, and what steps can you take to eliminate the seemingly endless opinions or “noise” crowding the airwaves and the web.
Our team stands by a dollar cost average rotation strategy into commercial real estate. As stated before, in our opinion we will see a massive rotation in the markets due to market platitudes, it is just a matter of time.
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 TCO One REIT provides a non correlated alternative with competitive returns.
REIT Performance Overall
Observe the following chart:
Source: NAREIT
As Illustrated, REITS: specifically Residential and and Retail, our focus, have greatly exceeded even the buoyant stock markets performance YTD.
Residential: 30.9%
Retail: 38.3%
DOW: 8.8%
S&P 500: 10.93%
Russel 1000: 13.5%
As you can see, not only are the returns undeniably competitive, when one considers the non correlation component, it is logical to take gains, reduce risk and the guessing game.
The Cawthon TCO One REIT offers you the ability to obtain a inflationary and non-correlated market hedge at 21%. That translates into 18.00% post current inflation. If you have a qualified portfolio, and allocate a minimum of $25k , you have potential 18% 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.
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.
Comentários