Addressing Key Concerns in Portfolios with REITs
Market expectations for inflation and economic growth are rising as economies begin to recover post COVID. Inflation remains the topic du jour and probably for good reason. Having been in a downward trend since 1980, falling from 15% to around 2% in the last decade, inflation is now on the rise. Whether this rise in inflation proves to be transitory or not, it is a new environment relative to the past and requires careful examination of innovative frontiers in diversifying asset classes.
In our opinion, three of the most common concerns faced by investors today can be addressed by incorporating REITs in a diversified portfolio: REITs may be an appropriate solution for investors who are concerned about higher inflation, are seeking income in the extended low interest rate environment, and who may also be looking to diversify away from U.S. growth and technology concentrations in the equity portion of portfolios.