Historically, when Main Street is soaring with higher-than-average levels of consumer confidence and low unemployment, it’s met with a tough investing environment in the stock market, and right now is no exception. But every new challenge brings with it new opportunities, and there’s never been a better time to diversify through real estate investment, which offers secure return on investment and ongoing income, as well as a hedge against inflation and the opportunity for tax-deferred growth if you buy investment property in your IRA account.
Read on to see what top analyst Jim Paulsen has to say about stock market investing over the next five years… And learn what to do about it right now to protect recent growth and earn proven investment income!
Stock Market Volatility Expected to Rise
As lead strategist of the Leuthold Group, Jim Paulsen has earned a reputation for discerning market trends. He believes current indicators point to a “less than favorable” environment for stock market investing over the next five years, making right now an ideal time to cash in your gains and diversify some assets to include proven income-producing investments like real estate.
“Get used to it”, wrote CNBC earlier this week. “Stock market returns are setting up for a tough five years ahead as economic benefits shift from Wall Street to Main Street”.
For the average investor, this means lackluster returns that may dip well below the typical 7-10% projected ROI most financial advisors like to use when playing it safe, but in reality ongoing stock market volatility could hit some investors even harder, depending on how their portfolios are allocated.
“This recovery is near a peak, [so] the risk-return profile of the stock market has worsened considerably, and investors should prepare for far less satisfying results in the next five years”, CNBC reports. “Conditions currently evident on Main St. suggest a tougher road for the financial markets in the next several years, but perhaps improvement in the real asset markets [such as income producing investment properties]”.
Smart Real Estate Investing
To maximize the earning potential (and reduce the stress factor) of real estate investments in your financial portfolio, look for income producing turnkey rental properties that require little or no involvement from you. It’s best to partner with an experienced property management team who can handle all of the maintenance, marketing and rental requirements, leaving you to collect returns and – in the case of a vacation home – enjoy the property from time to time! This alternative investment strategy works best in top vacation destinations like Mexico’s Riviera Maya, where tourism numbers are on the rise and investors benefit from a steady stream of new clientele.
Do you have questions about investing in real estate? Post them in the comments!
Read Real Estate Investing: Myths, Facts and How to Get Started and protect your assets from ongoing stock market volatility with innovative turnkey investment properties.