Economy
According to its bi-annual Investor Sentiment Report, commercial real estate data platform Lightbox found that real estate investors are increasingly concerned about a potential recession. In fact, 90 percent of the survey respondents were concerned about the potential for an upcoming recession. Survey participants included commercial real estate professionals from brokerage firms, investment firms, and other real estate segments. Approximately one-third of the survey’s respondents said they were “very concerned” about a recession, while 56 percent said they were just “concerned.” Only 10 percent said they were not concerned at all. The survey, which was taken in August and September, also reflected concerns over the impact of rising interest rates, inflation, and supply chain disruption. Looking at the rest of 2022, most respondents were not optimistic about the real estate market, but 42 percent were more optimistic about 2023. In addition, 80 percent of respondents said rising interest rates, high inflation, and other issues have impacted their hiring strategy, while forty percent said they are only hiring for high-priority needs.
Finsum: Based on the results of a recent survey, 90 percent of real estate investors are concerned about the potential for an upcoming recession.
CrowdStreet Advisors, the in-house investment manager for the real estate investing platform CrowdStreet, recently announced plans to accelerate the development of private commercial real estate solutions for financial advisors. CrowdStreet Advisors provides access to private commercial real estate investments that had previously only been available to institutional investors. As of September 30th, the firm had $431 million in assets under management across separately managed accounts and more than 25 private funds. CrowdStreet REIT I (C-REIT), the firm's flagship fund, was recently launched and offers financial advisors a low-cost entry point for clients interested in private commercial real estate projects focused on growth and capital appreciation. C-REIT, which has so far raised $37 million, is available on custody platforms such as Fidelity, Schwab, Pershing, TD Ameritrade, and 17 self-directed IRA custodians. The accelerated expansion of these solutions is due to an increased need for client portfolio diversification and inflation protection.
Finsum: Due to increased demand for portfolio diversification, CrowdStreet Advisors is accelerating the development of private real estate solutions for financial advisors and their clients.
Relative Strength is an investment strategy based on the belief that winning securities will continue to outperform. It provides a way for advisors to identify leading stocks in sectors and other market segments based on their history of outperformance. The premise is that investors should only invest in the areas of the market that have shown the ability to outperform. Investors should stay with those securities as long as they continue to outperform and then sell when they begin to fade.
Since relative strength is based on price, and not on fundamental research or your gut, emotion doesn’t Companies, sectors, and other market segments can establish themselves as leaders and even remain as leaders for years to come.
Relative strength can also identify areas of the market that have weakened and should be avoided. This can help your portfolio adapt to market swings. It can also help you to manage risk. However, you should note that relative strength will not be able to target a stock’s exact top or bottom as no investment strategy can be expected to do so consistently. Plus, waiting for confirmation that a stock is in fact a leader, allows you to avoid stocks that are short-term winners, but fail to establish themselves long-term.
Relative strength’s ability to deliver outperformance has been demonstrated by numerous academic and financial studies. Since relative strength is simply the comparison of price performance in a universe of securities, it’s not difficult to develop a rules-based system for investing in high relative strength securities.
Nasdaq Dorsey Wright helps advisors identify Relative Strength stocks and sectors for them to include in their client portfolios. Click here for a free trial of relative strength research and tools.
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Inflation: the omnipresent bugaboo. As it continues to hang around a 40 year high in the U.S., to offset unabated volatility In the traditional stock market, many investors are plumbing for alternative strategies, according to glovenewswire.com as sourced from yieldstreet.
Now, fortuitously, in recent years. diversity and accessibility has evolved into the name of the game in alternative investment options. Yieldstreet, among other online investment platforms, have significant ratcheted up the ease with which investors can alter direction and sprinkle critical diversification into the portfolios, the site continued.
And there’s this: given the gaggle of strategies from which to select, all investors need do is home in on the alternative investment , such as P2P Lending, real estate or crypto, best sutured to for their specific investing style and level of risk.
So, if the stock market isn’t your cup of tea, according to investables-blog.webflow.io, seven best investment alternatives include:
- Gold
- Real estate
- Cryptocurrency
- Art
- Wine & Liquor
- NFTs
- Watches
In the event inflation extends beyond 3%, the site added, there’s as much as a 32% uptick in art sales. When conditions hit the skids in traditional finances, investors head to the best alternative investments. That, most of the time? Bingo. Art.
In the aftermath of what had been a sweet buzz of a ride, stocks are embroiled in another unwelcome turn, according to ally.com. Last week, of course, the S&P 500, bless it, threw in the towel of what had been a four-week run. This week? You go it; the setback continues.
So, what’s up with that? Well, let’s count the uncertainties. Corporate earnings season’s winding down. Summer? Vaulting into the rear view mirror. And the news cycle will slow to a trickle. It all spells a vacuum in solid direction which, right again, puts air under the likelihood of volatility, the site continued.
In fact, taking, well, stock, of the interest rate trend lines over this summer, they’re more rocky than stable, according to money.usnews.com. The swings in the average 30 year fixed rates have been madcap, percolating and descending by as much as a quarter point per seek following a mid June peak to 5.81%.
The 30-year fixed rate went back up to well over 5% this week -- a reminder that recent volatility remains persistent, said Sam Khater, vice president, chief economist and head of Freddie Mac’s Economic and Housing Research division. “Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market.”
According to a Bank of America analyst, the cybersecurity industry is in the midst of a spending slowdown. The slowdown has mostly affected small and mid-sized businesses. While large enterprises haven’t shown signs of a slowdown just yet, this might change as larger firms may need to reduce budgets, likely starting next year. While the demand for cybersecurity solutions has been surging as war rages on in Ukraine, uncertainties from the global economic slowdown are starting to have an effect. Distributors are expected to see slowdowns in Identity and Access Management (IAM) and Virtual Machine (VM), while areas such as endpoint solutions, cloud security, and privileged access management are seen as more resilient. Companies such as Microsoft with its bundle offerings, and SentinelOne and CrowdStrike that provide endpoint security should benefit, at least initially. Cloud security providers Zscaler and Palo Alto Networks are expected to benefit as well.
Finsum: Uncertainties arising from the global economic slowdown have triggered a slowdown in spending on some cybersecurity solutions.