There has been recent chatter among analysts regarding the effectiveness, or lack thereof, of central bank monetary policy. Government-issued debt seems to be setting new records as yields attempt to fall to zero. In Europe, so-called “negative” yields are now the norm. Yet it may now be coming to a halt as negative yields, where issuers actually pay bond buyers to invest in bonds, isn’t having any effect. And according to an article* today, policymakers are “making this up as we go along.” It really is uncharted territory. Here in the States, U.S. Treasuries are still the safest bet globally but yields are minuscule.


Not so real estate. Much like a bond, real estate investing provides a given return yet the return on a real estate investment can reach double digits and dividends are paid monthly in the form of rent. Stocks and mutual funds can provide greater rewards but then again the element of risk must be considered. When publicly traded companies report their quarterly earnings, the price of an individual stock will rise, fall or stay the same as a result of or anticipation of announced earnings. Real estate on the other hand has predictable earnings, will increase wealth over time and will never fall to zero. Real estate is an asset you can physically touch and see.

If your own individual portfolio does not include some allocation toward real estate you should speak with your financial adviser about adding some to your holdings. You can invest in real estate by financing the acquisition of income properties and commercial for developers or you can buy a property, hold it for the long term and reap the cash flow each month while having it professionally managed.

*Sell, sell, sell as monetary policy is a dead duck. Matt Clinch, August 10, 2016