As the recession grips the equity and debt markets, the extreme market dislocation caused by COVID-19 has initiated many investors to look for alternative investment opportunities that will sustain value and cash flow through a downturn and be well-positioned when the recovery begins. In Wealth Management, Vince DiSalvo writes about how alternative asset classes, particularly multifamily real estate, can add increased stability to a portfolio in a highly volatile macro environment.
“In a rising market, everyone makes money”; however, it is in a volatile recessionary environment where uncertainty abounds that historically effective investment strategies are truly tested. In these volatile environments, an appetite for risk and rapid growth is often substituted with a desire for fundamentals driven stability and superior risk-adjusted returns. The extreme market dislocation caused by COVID-19 has incentivized investors to reevaluate their portfolios and reassess their market risk. As the recession grips the equity and debt markets, this whitepaper explores how alternative asset classes, particularly multifamily real estate, can add increased stability to a portfolio in a highly volatile macro environment.
Kingbird director of capital markets Lei Farrand discusses how to leverage real estate, and apartments in particular, to insulate an investment portfolio against broader market declines.
