The global economy has experienced quite the routing these past few months and it is difficult to know how to defend you hard-earned money. Inflation is
raging, interest rates are soaring, supply chain disruptions and reduced consumer spending
continue to adversely impact small businesses and major corporations alike, all the while, the
stock, crypto, and bond markets have wiped away tens of trillions in wealth. As an investor,
you may begin to find yourself in disarray given the economic climate. There is however, one
particular asset class that is standing strong amidst the macro & micro economic turbulence.
Real estate has once again proved itself to be the leading alternative investment of choice, and
a tremendous defense against an inflationary environment. Although the stock market can
generate high returns, the benchmark (S&P 500) traditionally trumps the returns of funds by
nearly two to three times. Along with the constant volatility, inflationary risk, and many other revolving economic factors, this leaves investors at a major disadvantage financially, with some firms & companies collapsing overnight & sending everyone into a mass frenzied attempt to sell
or recall capital at a major loss. Real estate investing is a great way to create passive income,
while still generating long-term equity from having your principal invested into an appreciating
asset. Also, unlike the stock market, inflation leads to higher asset prices in real estate markets,
and mitigates downside risk to your capital due to the nature of investment into a hard asset. At
Break of Day Capital, by investing in value-add multifamily properties we have done exactly that
for our many investors. Accumulating wealth through real estate investing remains the safest
and easiest way to safeguard your money while benefiting from the cash-flow, plethora of tax
incentives & advantages, and equity appreciation.