Public Real Estate Returns Are Down While Private Real Estate Returns Are Up. Which Is Right?
Since 1978, public real estate has delivered approximately thirty percent higher annualized returns than private real estate. However, this can be largely attributed to public real estate using three times more leverage than private real estate, and as result, public real estate has experienced three times the volatility.
As Rates Rise, Consider Fixed Income that Floats
Led by the Federal Reserve’s campaign of increasingly large hikes, interest rates have risen meaningfully year-to-date. Conventional wisdom would guide investors to sell fixed income — a reflection of one of the most fundamental relationships in the investment world: as rates go up, their investments go down.