Storm only just beginning in the real estate investment market and two other trouble spots

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Trouble is only starting to brew in the real estate investment market along with these two other trouble spots. Find out more.

For example, Toronto housing market sales in November collapsed by 49 per cent from a year ago, and yet the composite benchmark price was only down 5.5 per cent during the same time frame.

And, even more notable, Blackstone Inc.’s US$69-billion real estate fund started limiting withdrawals last week. We read that the fund was somehow able to post a net 9.3-per-cent return over the first three quarters of the year while publicly traded real estate investment trusts dropped 20 to 30 per cent in value. It isn’t a surprise that investors would cash in at a gain while comparable public market investments are down considerably.

We’ve noticed that many investors don’t seem to realize technology equities have duration exposure given the timing of their companies’ cash flows as well as dependence on ultra-low rates and cost of capital to fuel their growth.

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Storm only just beginning in the real estate investment market and two other trouble spotsTrouble is only starting to brew in the real estate investment market along with these two other trouble spots. Find out more.
Fuente: financialpost - 🏆 7. / 85 Leer más »