Hesitant About The Stock Market? The Solution May Lie In Real Estate Lending: After nine years of a rising stock market, we enter 2019 in what appears to be a very volatile time for equity markets. In the space of weeks we’ve seen 1,000-plus point swings in the Dow recently. This begs the question of whether or not 2019 will bring a recession, a bear market or both. I don’t pretend to know the answer, but I am willing to predict that this year will continue to be turbulent for equities.
Unless you have the stomach for day-trading into this volatility or are taking such a long position that current moves in the market don’t affect you, you’re likely trying to develop an asset allocation strategy to preserve capital while still earning a fair risk-adjusted return. Private real estate lending, particularly in the short-term debt space, may offer a unique opportunity in these turbulent times and those ahead.