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Investing

Florida, DeSantis yank billions in investments from ‘woke’ BlackRock over ESG investing – USA TODAY

Source: https://news.google.com/__i/rss/rd/articles/CBMiYGh0dHBzOi8vd3d3LnVzYXRvZGF5LmNvbS9zdG9yeS9tb25leS8yMDIyLzEyLzAxL2Zsb3JpZGEtZGVzYW50aXMtYmxhY2tyb2NrLWVzZy13b2tlLzEwODEyMzgyMDAyL9IBAA?oc=5

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Investing

Why Rental Properties Are Far Worse Investments Than REITs – Seeking Alpha

KentWeakley

Most investors think that rental properties are more rewarding investments than real estate investment trusts (“REITs”) (VNQ). They think that this is the case because:

  • You can buy rental properties with debt.
  • You don’t need to pay managers.
  • You may enjoy tax benefits from depreciation.
  • The yield is typically higher.
  • And after all, you are putting in a lot of work and taking more risks, so naturally, you would expect to earn higher returns.

And yet, the reality is the opposite.

Many studies have been conducted on this topic, and they all say that REITs are more rewarding than rental properties or even private equity real estate funds such as those managed by firms like Brookfield (BAM) and Blackstone (BX).

Here are the results of three of those studies:

Study 1: REITs outperform by ~4%:

EPRA

Study 2: REITs outperform by ~4%:

Cambridge

Study 3: REITs outperform by ~3%:

NAREIT

How could this be?

The results seem so improbable that most people won’t seek to understand them. Rental investors are especially quick to dismiss the results because they would hate to admit that all their hard work might have gone to waste.

But in today’s article, I will explain to you why these results are actually logical and expected. In fact, I would say that it would illogical if REITs didn’t outperform rental properties.

Here are 10 reasons why:

Reason #1: REITs have better access to capital

Let’s start by correcting a big misconception about REITs, which is that you cannot use leverage when investing in them.

Rental investors think that they can earn higher returns because they can use a mortgage to leverage their equity. But what they ignore is that REITs are doing exactly the same thing and you enjoy the same benefits as shareholders.

What’s traded on the stock market is the “equity value”, not the total asset value. This is why it is volatile. It is leveraged by additional debt that REITs use to make their real estate investments.

As such, you enjoy the same …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiY2h0dHBzOi8vc2Vla2luZ2FscGhhLmNvbS9hcnRpY2xlLzQ1NjE4MDItd2h5LXJlbnRhbC1wcm9wZXJ0aWVzLWFyZS1mYXItd29yc2UtaW52ZXN0bWVudHMtdGhhbi1yZWl0c9IBAA?oc=5

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Investing

BlackRock’s Chaudhuri sees ETFs as key tool in new investing era – Pensions & Investments

The old investing regime has given way to a new one that will require “nimble and frequent” portfolio adjustments, and exchange-traded funds can be a key tool to help investors navigate it, according to Gargi Pal Chaudhuri, managing director and head of iShares investment strategy, Americas at BlackRock.

Ms. Chaudhuri’s comments came during a BlackRock Investment Institute 2023 Outlook media briefing in New York on Wednesday. During the past 15 years, accommodative central bank monetary policy encouraged investors to add risk in pursuit of yield, according to the iShares 2023 Year-Ahead Investor Guide, released Wednesday.

The long period of low, stable rates led to a shift away from fixed income and toward high-growth equities, the investor guide said. Now, BlackRock believes that the “lower rates for longer” regime has shifted to one of “higher rates for longer.” When it comes to portfolio construction, that shift has “profound” implications, the guide said. After living for more than a decade in the TINA, or there-is-no-alternative world, we have moved to a time when “bonds are back,” Ms. Chaudhuri said.

According to the investor guide, with yields at levels not seen since the days of the global financial crisis of 2007 to 2009, the front end of the curve in both nominal U.S. Treasuries and investment-grade credit offers investors the potential for attractive total returns.

“The need to be nimble is very crucial because this is a smaller cycle,” added Ms. Chaudhuri, who cautioned against expecting this cycle to be like previous ones, which were much longer.

Investors should “get ready to move around rapidly,” she said, adding that the use of ETFs can really help investors with that.

Source: https://news.google.com/__i/rss/rd/articles/CBMibmh0dHBzOi8vd3d3LnBpb25saW5lLmNvbS9leGNoYW5nZS10cmFkZWQtZnVuZHMvYmxhY2tyb2Nrcy1nYXJnaS1jaGF1ZGh1cmktc2Vlcy1ldGZzLWtleS10b29sLW5ldy1pbnZlc3RpbmctZXJh0gEA?oc=5

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Investing

Angela Matthews: The Investment Coach Helping Simplify Stock Market Investing for Novice Investors – Yahoo Finance

FLOWER MOUND, TX / ACCESSWIRE / November 30, 2022 / The news headlines that we see about the volatility in stock markets, and the crypto crash has given the general perception that investing in such a risky scenario is best left to experts. Investment coach and owner of the Happy Investment Method, Angela Matthews, is seeking to change this perception, through her company, and help ordinary people create wealth through long-term investment. She has developed proprietary courses to simplify basic investing principles for novice investors so that they receive optimal returns from their savings.

Pathos Communications, Wednesday, November 30, 2022, Press release picture

Most people feel that they lack the financial expertise and knowledge needed to invest in the stock market or other assets for wealth creation. Humans are risk-averse by nature. When markets are volatile, new investors panic and sell off their stocks to conserve their capital. Angela Matthews, however, feels that this is the best time to invest as it is possible to buy stocks at discounted rates and benefit from the upsides in a subsequent rally. Angela has benefited greatly during downturns in the stock market when she bought stocks like Apple and Citibank at discounted prices.

Angela started her own investment journey during one such downturn, in 2008. While a lot of people sold off whatever stocks they had during the recession, Angela held on to the ones she had. She then bought more shares of companies, which prior to the crisis, she was unable to afford. Typically, a downcycle is followed by a boom in two or three years. This is why, at a time when most people were fearful, Angela chose to be optimistic. She identified this downturn in the market as an opportunity for extreme growth. As a passive, long term investor, she knew that over time, things would get better. Eventually, the economy recovered and her patience paid off. After that, she never looked back. This is how she embarked on her career as an expert in personal finance.

Angela launched the Happy Investor Method signature course in 2017. The course serves as a boot camp for investment novices who think that investment is a complex process for which they lack expertise and time. The course covers the basics of investing, like when to buy and sell, how to place orders, the use of algorithms to invest and the difference between mutual funds and stocks. Through a proprietary methodology called the Belt Methodology, Angela simplifies technical analysis for clients and teaches them how to analyze companies. Instead of using complex charts and candles, line graphs are used for technical analysis. All of the students are encouraged to set up dummy accounts for practicing investment strategies …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiVmh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9hbmdlbGEtbWF0dGhld3MtaW52ZXN0bWVudC1jb2FjaC1oZWxwaW5nLTE3MzUwMDc3Mi5odG1s0gFeaHR0cHM6Ly9maW5hbmNlLnlhaG9vLmNvbS9hbXBodG1sL25ld3MvYW5nZWxhLW1hdHRoZXdzLWludmVzdG1lbnQtY29hY2gtaGVscGluZy0xNzM1MDA3NzIuaHRtbA?oc=5

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Investing

Short-Term Investments Can Increase Reward and Decrease Risk – Kiplinger’s Personal Finance

Concerns about rising inflation, interest rates and global geopolitical uncertainty might have you feeling uneasy about your money. Are your retirement savings protected in the event of a stock market crash or prolonged economic downturn? Believe it or not, there are some lesser-known short-term investments that can increase reward and decrease risk to safely grow your money during turbulent times, while also providing you the opportunity to reinvest when the economic landscape stabilizes.

Investing Is a Double-Edged Sword

High inflation and market volatility make having a diversified investment strategy vital to long-term financial success. By investing both in the stock market and in other alternatives, you get the diversification you need to weather a market downturn. Every investment type is a double-edged sword. If you pull out of the market and retreat strictly to cash, inflation will suck the life out of your money. And if you invest everything you own into a down market, you may compound your losses.

Don’t Sit on the Sidelines Out of Fear

Investors with a lot of cash are sitting on the sidelines. This is something we haven’t seen since the Great Recession. People are nervous. In a low inflationary environment, sitting on the sidelines in all cash may work, but with inflation rates around 8%, people need to find alternative means to grow their wealth. Sitting in cash guarantees your dollars are losing value according to whatever the inflationary rate is. There are places to “park” your money, obtain guaranteed yield and help fight inflation. One key to retirement planning is making sure your dollar is appreciating.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of Kiplinger’s expert advice – straight to your e-mail.

Here Are Some Short-Term Investment Options

Series I savings bonds (opens in new tab) are low-risk savings products purchased directly from the government, backed by the U.S. Treasury Department and designed to protect against inflation. The yield is determined by a fixed rate, which remains the same for the life of the bond, and an inflation rate, which is based on the consumer price index (CPI). Twice a year, the Treasury sets a new inflation rate for the next six months. Series I bonds were designed …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiYGh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vaW52ZXN0aW5nL3Nob3J0LXRlcm0taW52ZXN0bWVudHMtY2FuLWluY3JlYXNlLXJld2FyZC1hbmQtZGVjcmVhc2Utcmlza9IBAA?oc=5

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Investing

Innovation in ESG Investing – Pensions & Investments

There has never been a better time to invest based on environmental, social and governance principles. Institutional asset owners are benefiting from a menu of ESG strategies, products and capabilities that is bigger than ever before. Innovation by asset managers and increased regulatory pressure is driving ESG investing forward.

Most asset owners, 85%, believe that ESG factors are material to investment policy, while 70% say ESG factors have become more material in the last five years, according to the Voice of the Asset Owner survey from Morningstar Indexes and Sustainalytics this year. Yet the survey also revealed that ESG implementation remains a slow process: Only 29% of asset owners said they use ESG factors for more than half their total portfolio.

Innovation in ESG Investing Webinar

Challenges in data standardization remain, but asset managers have moved forward with proprietary tools to harness increasing amounts of ESG data and with improved clarity around their ESG strategies.

Featuring

Christopher McKnett

Co-Head, Sustainable Investing

Aegon Asset Management

Annie Chor Joyce

Managing Director, Head of ESG

Amundi US

Kirk Moore, CFA

Global Head of Research

Columbia Threadneedle Investments

Gareth Shepherd, PhD, CFA

Co-Head Voya Machine Intelligence, Portfolio Manager

Voya Investment Management

Wednesday, November 30, 2022

2:00 p.m. ET

The biggest concern of asset owners continues to be the bottom line, said Christopher McKnett, co-head of sustainable investing at Allspring Global Investments. “It’s always about performance. From our perspective, given some of the equity market rotation that we’ve seen over the last 12 to 18 months, with value doing better than growth and the strong performance of energy, investors want to know how that affects performance today and what it means for the future,” he said.

But investing for ESG and the energy transition from fossil fuels to a net-zero economy isn’t an and/or proposition, McKnett added, referring to the United Nations-led goal of moving to eliminate greenhouse gas emissions. “We think it’s an ‘and,’ not an ‘or,’ because solving for energy security can often take you toward a more diversified energy mix and, ultimately, away from more potentially volatile fossil fuels.”

Asset owners’ concerns with ESG adoption aren’t limited to performance, though. McKnett pointed to what he calls the authenticity issue. “Our institutional clients are doing deeper diligence on [asset managers] than they ever have before,” he noted. “When I started in the asset management business years ago, it was ‘Tell me what you do.’ Now it’s ‘Tell me and show me, and back it up with examples A, B …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiMWh0dHBzOi8vd3d3LnBpb25saW5lLmNvbS9FU0dpbm5vdmF0aW9uLVJlcG9ydDIwMjLSAQA?oc=5

Categories
Investing

Short-Term Investments Can Increase Reward and Decrease Risk – Kiplinger’s Personal Finance

Concerns about rising inflation, interest rates and global geopolitical uncertainty might have you feeling uneasy about your money. Are your retirement savings protected in the event of a stock market crash or prolonged economic downturn? Believe it or not, there are some lesser-known short-term investments that can increase reward and decrease risk to safely grow your money during turbulent times, while also providing you the opportunity to reinvest when the economic landscape stabilizes.

Investing Is a Double-Edged Sword

High inflation and market volatility make having a diversified investment strategy vital to long-term financial success. By investing both in the stock market and in other alternatives, you get the diversification you need to weather a market downturn. Every investment type is a double-edged sword. If you pull out of the market and retreat strictly to cash, inflation will suck the life out of your money. And if you invest everything you own into a down market, you may compound your losses.

Don’t Sit on the Sidelines Out of Fear

Investors with a lot of cash are sitting on the sidelines. This is something we haven’t seen since the Great Recession. People are nervous. In a low inflationary environment, sitting on the sidelines in all cash may work, but with inflation rates around 8%, people need to find alternative means to grow their wealth. Sitting in cash guarantees your dollars are losing value according to whatever the inflationary rate is. There are places to “park” your money, obtain guaranteed yield and help fight inflation. One key to retirement planning is making sure your dollar is appreciating.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of Kiplinger’s expert advice – straight to your e-mail.

Here Are Some Short-Term Investment Options

Series I savings bonds (opens in new tab) are low-risk savings products purchased directly from the government, backed by the U.S. Treasury Department and designed to protect against inflation. The yield is determined by a fixed rate, which remains the same for the life of the bond, and an inflation rate, which is based on the consumer price index (CPI). Twice a year, the Treasury sets a new inflation rate for the next six months. Series I bonds were designed …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiYGh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vaW52ZXN0aW5nL3Nob3J0LXRlcm0taW52ZXN0bWVudHMtY2FuLWluY3JlYXNlLXJld2FyZC1hbmQtZGVjcmVhc2Utcmlza9IBAA?oc=5

Categories
Investing

Innovation in ESG Investing – Pensions & Investments

There has never been a better time to invest based on environmental, social and governance principles. Institutional asset owners are benefiting from a menu of ESG strategies, products and capabilities that is bigger than ever before. Innovation by asset managers and increased regulatory pressure is driving ESG investing forward.

Most asset owners, 85%, believe that ESG factors are material to investment policy, while 70% say ESG factors have become more material in the last five years, according to the Voice of the Asset Owner survey from Morningstar Indexes and Sustainalytics this year. Yet the survey also revealed that ESG implementation remains a slow process: Only 29% of asset owners said they use ESG factors for more than half their total portfolio.

Innovation in ESG Investing Webinar

Challenges in data standardization remain, but asset managers have moved forward with proprietary tools to harness increasing amounts of ESG data and with improved clarity around their ESG strategies.

Featuring

Christopher McKnett

Co-Head, Sustainable Investing

Aegon Asset Management

Annie Chor Joyce

Managing Director, Head of ESG

Amundi US

Kirk Moore, CFA

Global Head of Research

Columbia Threadneedle Investments

Gareth Shepherd, PhD, CFA

Co-Head Voya Machine Intelligence, Portfolio Manager

Voya Investment Management

Wednesday, November 30, 2022

2:00 p.m. ET

The biggest concern of asset owners continues to be the bottom line, said Christopher McKnett, co-head of sustainable investing at Allspring Global Investments. “It’s always about performance. From our perspective, given some of the equity market rotation that we’ve seen over the last 12 to 18 months, with value doing better than growth and the strong performance of energy, investors want to know how that affects performance today and what it means for the future,” he said.

But investing for ESG and the energy transition from fossil fuels to a net-zero economy isn’t an and/or proposition, McKnett added, referring to the United Nations-led goal of moving to eliminate greenhouse gas emissions. “We think it’s an ‘and,’ not an ‘or,’ because solving for energy security can often take you toward a more diversified energy mix and, ultimately, away from more potentially volatile fossil fuels.”

Asset owners’ concerns with ESG adoption aren’t limited to performance, though. McKnett pointed to what he calls the authenticity issue. “Our institutional clients are doing deeper diligence on [asset managers] than they ever have before,” he noted. “When I started in the asset management business years ago, it was ‘Tell me what you do.’ Now it’s ‘Tell me and show me, and back it up with examples A, B …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiMWh0dHBzOi8vd3d3LnBpb25saW5lLmNvbS9FU0dpbm5vdmF0aW9uLVJlcG9ydDIwMjLSAQA?oc=5

Categories
Investing

Short-Term Investments Can Increase Reward and Decrease Risk – Kiplinger’s Personal Finance

Concerns about rising inflation, interest rates and global geopolitical uncertainty might have you feeling uneasy about your money. Are your retirement savings protected in the event of a stock market crash or prolonged economic downturn? Believe it or not, there are some lesser-known short-term investments that can increase reward and decrease risk to safely grow your money during turbulent times, while also providing you the opportunity to reinvest when the economic landscape stabilizes.

Investing Is a Double-Edged Sword

High inflation and market volatility make having a diversified investment strategy vital to long-term financial success. By investing both in the stock market and in other alternatives, you get the diversification you need to weather a market downturn. Every investment type is a double-edged sword. If you pull out of the market and retreat strictly to cash, inflation will suck the life out of your money. And if you invest everything you own into a down market, you may compound your losses.

Don’t Sit on the Sidelines Out of Fear

Investors with a lot of cash are sitting on the sidelines. This is something we haven’t seen since the Great Recession. People are nervous. In a low inflationary environment, sitting on the sidelines in all cash may work, but with inflation rates around 8%, people need to find alternative means to grow their wealth. Sitting in cash guarantees your dollars are losing value according to whatever the inflationary rate is. There are places to “park” your money, obtain guaranteed yield and help fight inflation. One key to retirement planning is making sure your dollar is appreciating.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of Kiplinger’s expert advice – straight to your e-mail.

Here Are Some Short-Term Investment Options

Series I savings bonds (opens in new tab) are low-risk savings products purchased directly from the government, backed by the U.S. Treasury Department and designed to protect against inflation. The yield is determined by a fixed rate, which remains the same for the life of the bond, and an inflation rate, which is based on the consumer price index (CPI). Twice a year, the Treasury sets a new inflation rate for the next six months. Series I bonds were designed …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiYGh0dHBzOi8vd3d3LmtpcGxpbmdlci5jb20vaW52ZXN0aW5nL3Nob3J0LXRlcm0taW52ZXN0bWVudHMtY2FuLWluY3JlYXNlLXJld2FyZC1hbmQtZGVjcmVhc2Utcmlza9IBAA?oc=5

Categories
Investing

Innovation in ESG Investing – Pensions & Investments

There has never been a better time to invest based on environmental, social and governance principles. Institutional asset owners are benefiting from a menu of ESG strategies, products and capabilities that is bigger than ever before. Innovation by asset managers and increased regulatory pressure is driving ESG investing forward.

Most asset owners, 85%, believe that ESG factors are material to investment policy, while 70% say ESG factors have become more material in the last five years, according to the Voice of the Asset Owner survey from Morningstar Indexes and Sustainalytics this year. Yet the survey also revealed that ESG implementation remains a slow process: Only 29% of asset owners said they use ESG factors for more than half their total portfolio.

Innovation in ESG Investing Webinar

Challenges in data standardization remain, but asset managers have moved forward with proprietary tools to harness increasing amounts of ESG data and with improved clarity around their ESG strategies.

Featuring

Christopher McKnett

Co-Head, Sustainable Investing

Aegon Asset Management

Annie Chor Joyce

Managing Director, Head of ESG

Amundi US

Kirk Moore, CFA

Global Head of Research

Columbia Threadneedle Investments

Gareth Shepherd, PhD, CFA

Co-Head Voya Machine Intelligence, Portfolio Manager

Voya Investment Management

Wednesday, November 30, 2022

2:00 p.m. ET

The biggest concern of asset owners continues to be the bottom line, said Christopher McKnett, co-head of sustainable investing at Allspring Global Investments. “It’s always about performance. From our perspective, given some of the equity market rotation that we’ve seen over the last 12 to 18 months, with value doing better than growth and the strong performance of energy, investors want to know how that affects performance today and what it means for the future,” he said.

But investing for ESG and the energy transition from fossil fuels to a net-zero economy isn’t an and/or proposition, McKnett added, referring to the United Nations-led goal of moving to eliminate greenhouse gas emissions. “We think it’s an ‘and,’ not an ‘or,’ because solving for energy security can often take you toward a more diversified energy mix and, ultimately, away from more potentially volatile fossil fuels.”

Asset owners’ concerns with ESG adoption aren’t limited to performance, though. McKnett pointed to what he calls the authenticity issue. “Our institutional clients are doing deeper diligence on [asset managers] than they ever have before,” he noted. “When I started in the asset management business years ago, it was ‘Tell me what you do.’ Now it’s ‘Tell me and show me, and back it up with examples A, B …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiMWh0dHBzOi8vd3d3LnBpb25saW5lLmNvbS9FU0dpbm5vdmF0aW9uLVJlcG9ydDIwMjLSAQA?oc=5