Siesmic shift in Real Estate

“Get ready for a new asset class: real estate. It’s set to break out from under the guise of financials into a separate category… first since 1999.”

Real estate has been in the shadows of the financial sector for long enough. In the article in Investor’s Business Daily (http://www.investors.com/news/management/financial-advisor-briefing/note-to-advisors-prepare-to-give-reits-a-second-look/) specifically addresses the increase of capital flowing into REITs and other Real Estate assets. This shift of pushing real estate into its own category will allow more pension funds, endowments and advisors the opportunity to diversify their holdings.

Something to note is that REITs are somewhat related to real estate, however, they have a lot of exposure to interest rates as well as the general stock market conditions overall. Traditional real estate investments have little correlation to the stock market. With this new category of real estate make sure your advisor is up to date on not only REITs but also how real estate can help deliver returns outside of a volatile stock market.