How is homeowners’ insurance impacting the macro data?
The average homeowners’ insurance policy cost roughly $1,900 in 2023, up over 20% from the previous year and nearly 50% from before the pandemic.
The average homeowners’ insurance policy cost roughly $1,900 in 2023, up over 20% from the previous year and nearly 50% from before the pandemic.
For three years, stock and bond returns have been moving in the same direction. When times are good, this is not thought of as a problem; however, when stocks sell off and bonds are not there to catch them, then investors are faced with an important portfolio construction challenge to solve.
To understand these shifting dynamics and determine how to embrace this growing asset class, investors should consider: What’s driving the growth of private credit and the decline in high yield and, if private credit deserves a strategic allocation in a broader credit portfolio?
Following the pandemic, median home prices surged by double digits until peaking at the end of 2022. While prices are down roughly 12% since then, home affordability still sits at multi-decade lows.
Private equity has been surprisingly resilient throughout the Fed hiking cycle. In 2022, PE only declined by 2%, but is now 3.2% higher than the end of 2021, compared to U.S. small cap stocks, which were 7% lower.
Well-positioned investors could take advantage of the new era unfolding in healthcare transformation.
After a significant pricing reset, private real estate could be on the verge of a rebound due to a few key drivers.
Core Transportation investing generates steady and resilient returns through economic and geopolitical disruption.
Secondary transactions and co-investments are creating more potential to diversify alternatives portfolios.
The macro landscape has shifted dramatically over the last three years, and in 2024 uncertainty lingers as to whether the economy will experience resilience or recession.
While many of the traditional sources of diversification have been challenged by market conditions, alternative investments can enhance diversification.
The secondary market can often relieve liquidity issues for investors in private equity by offering the opportunity to sell existing investments to another buyer.
Private equity can play a critical role in diversified portfolios, enhancing returns and reducing volatility.
Private equity markets have historically been only available to institutional and high-net-worth investors, but are now accessible through 40-Act tender funds.
2023 has seen more office conversion activity – while sometimes this can be easier said than done, it does suggest that there is an evolving opportunity in the office space for investors who can deploy additional capital.
It would not be surprising to see a more notable re-rating in valuations later this year or in early 2024; this, in turn, will create opportunity for both primary and secondary market investors.
Learn about several tax advantages of public, non-listed real estate investment trusts (REITs)
Sometimes it makes sense for real estate investors to build a new property from the ground up instead of competing to buy an existing income-producing property. Learn more about the risks and benefits of adding development to a private real estate portfolio.