As the equity market cycle turns, wealth managers get real…

With fears growing that the equity market is due for a downturn, investors are increasingly turning their attention to real assets, which are perceived to offer downside protection. However, traditional real assets have had their yields bid down, offering only modest returns. Savvy investors are instead turning their attention to non-traditional tangible assets such as specialty areas of real estate, boats, aircraft, agriculture and timberland.  The appeal of physical assets during turbulent and frothy times is simple – capital preservation, steady cash flows, and inflation protection; while non-traditional physical assets add low correlation to the equity and bond markets and strong overall return generation.

Read more:  Financial Times – Real assets, however, niche, can offer stability in late-cycle markets