A Durable Future (Part 1)

By |2017-07-05T10:31:55+00:00July 5th, 2017|Categories: Money Basics|Tags: , , |

Do durable assets make sense as investments? Gold Roman Aureus. Source: Wikipedia Some things have been around a long time: silver and gold were currencies and a store of value for millennia; fine jewelry has always been a sign of status; and housing and land are always in demand—everyone has to live and world somewhere. But do they make sense in an investment portfolio? A little perspective is important. People get very emotional about real investments. We’re [...]

The Missing Asset (Part 2)

By |2017-02-03T16:05:21+00:00February 3rd, 2017|Categories: Global Market Update|Tags: , , , |

Is this a good time to add real estate to a portfolio? Image: Photoeverywhere.co.uk Real estate is a cyclical asset. When times are good, everyone is expanding. They want to be a part of the boom. When times are bad, it’s impossible to even think about positive returns, much less growth. And, of course, your perspective is always affected by your personal experience. While real estate is a global asset class, all real estate is local. Real [...]

The Hidden Asset

By |2017-02-02T11:26:38+00:00February 1st, 2017|Categories: Global Market Update|Tags: , , |

What’s the asset that no one talks about? Photo: Bryan Hanson. Source: Morguefile When I discuss asset allocation, I usually focus on stocks and bonds. Bonds are a senior claim on a business’s cash flow, and stocks are a residual claim on cash flow. So stocks benefit from a business’s growth, but they’re riskier – they get wiped out if the business fails. Bonds are safer, but they don’t go anywhere. If everything goes right, you just [...]

A Room of One’s Own (In a Portfolio)?

By |2016-11-17T16:14:29+00:00July 21st, 2015|Categories: Global Market Update|Tags: , , |

What good is real estate? Photo: Joao Pacheco. Source: Picjumbo I don’t mean as a place to live. Everyone needs four walls and a roof. I’m talking about real estate as an investment. Lots of people consider investing in real estate. By this they usually mean private real estate—buying a small apartment or office building and renting out the space. There may be a lot of specific, local demand for living and working space: college students cycling [...]