Investor Alert: S&P 500 loses $2 trillion in market capitalization
In late August, the S&P 500 lost $2 trillion in market capitalization. When market volatility rises, savvy investors utilize diversification to insulate their portfolios from uncertainty. Bonds, precious metals, cash and other low-yielding vehicles are among the most popular diversification options, while real estate offers much higher returns and a broader range of advantages over other asset classes. In addition to regular dividends or rent, real estate is an inflation hedge, tax shelter, a tangible asset, and has a negative correlation with the stock market.
Tangible real estate is a diversification that should be a part of every investor’s portfolio. Although single-family residences (SFRs) were once considered a specialty asset reserved for wealthy insiders, Linton Global’s business model now offers all investors a reasonable entry point into real estate investing. SFRs have other advantages for investors.
Real estate is among the best-sheltered tax havens available, including the popular 1031 exchange. Section 1031 of the IRS code enables investors to allocate proceeds from a sale into a like-kind investment without paying capital gains taxes. Building a portfolio while delaying tax commitments is an effective path to generate a large portfolio.
If you’re interested in considering investing in rental properties to diversify your investment portfolio, please call Linton Global at (312)612-1031 to learn how our turn key process can make this possible. Investor Alert: S&P 500 loses $2 trillion in market capitalization