With the world still accepting the major restructuring of the European political order and preparing for unpredictable election competition between Germany and the United States, investors are facing an uncertain world. Frequent terrorist attacks in Europe and elsewhere have contributed to right-wing populism and protectionism that may undermine the world economic order.
The confirmation of Donald Trump, a real estate tycoon, as the Republican candidate in the United States is a good example. Trump threatened to withdraw from the World Trade Organization(WTO) to protect the United States from the employment of globalization.
In Europe, as negotiations with the United Kingdom continue on the determination of new trade arrangements and the difficult transatlantic trade and investment partnership with the United States, the instinct for protectionism should also be challenged.
At that time, it was not clear that many activities would disrupt the market in the medium term. So, where should investors who want to get rid of the current uncertainty move to?
be confident
Despite the impact on global stock markets after Brexit and intense attention to the situation, the latest data of MSCI, a leading investment company, may make people temporarily think that the days of double-digit returns have ended.
According to the report released by MSCI in February, the PREA/IPD US quarterly real estate fund index showed that the US commercial real estate fund grew by an astonishing 15.6% in 12015. What is more noteworthy is that the cumulative yield of American commercial real estate investment in the past six years is 129%.
In fact, US commercial real estate achieved better results than other asset classes, including US bonds(up 4.39% from 2011 to 2015), stocks(up 13.45%), corporate bonds(up 4.72%) and bulk commodities(down 10.93%).
Simon Fairchild, representative director of Morgan Stanley Capital International(MSCI), said so.
“U, US real estate open-ended funds have achieved double-digit returns for six consecutive years.” This period included a marked recovery from the downturn of 2008/2009.
But Brexit did happen. Trump is far less likely to be elected President than at the beginning of the year, and China’s economic growth continues to slow down. Are these themes sure to change the situation?
The important technology for any investor is to identify opportunities even in times of uncertainty. Market watchers should pay attention to a recent announcement by Zhou Wei, China’s largest international real estate portal, that the UK real estate market’s attention has increased by 40% after the UK vote.
So, in the context of this uncertainty, what promotes growth and interest?
Basic knowledge of futures market
although uncertainties abound, astute investors recognize that the foundation of the market will not translate into a single political development. Like the United Kingdom, the basic forces of the American commercial real estate market create a good environment for investors.
Global pressure and uncertainty can keep US interest rates low in the medium term, so that foreign funds can flow steadily into the US economy, which will instead ensure good returns for those who want to continue to drive demand and provide such impetus.
The opportunity to do so is the investment of Rycal Group, which provides an entry opportunity for Carlton James Group focusing on the U.S. hotel industry. Carlton James has invested in this market for a period of time, with an average yield of 17% in the past five years. Carlton James Our strategy is based on extensive geographic information, taking into account the distance between development projects and roads, shopping centers and economic infrastructure, and regional economy, so as to find additional beneficiaries.
Simon Carlton, CEO of Carlton James Skywalker Hotel Group and Leica Group; geopolitical instability and government replacement will directly affect stock prices and investor confidence, leading to rapid and unstable market fluctuations. We saw this after the British government took office. As the US presidential election in November approaches, we should expect more.
“But we can see that in the next few weeks, this kind of fluctuation will correct itself when adapting to the new reality. The lesson is that investors should pay attention to the long-term and market fundamentals.”
“The US economy is still strong, and the world is uncertain about the status of the UK EU relationship, so investors can benefit from pursuing greater certainty than Europe.”
“Rycal has a good track record in formulating detailed exit strategies, diversified real estate product portfolios, and in-depth investment information to make our investments work. Carlton James expects to become a real source of growth in the next few years.”
