The superrich are selling stocks, buying properties and keeping cash ready

Market Watch ^ | August 5, 2019 | Shawn Langlois

[aMorePerfectUnion]

The superrich blueprint to navigating this hairy stock market: Tap the brakes and get ready to pounce when it all goes to hell.

And by the looks of Monday’s action, hell might not be too far away.

In the first quarter, Tiger 21, a coalition of 750 members worth in excess of $75 billion, raised cash to levels not seen since 2013. Not much changed in the second quarter in terms of keeping powder dry. The group’s holding 12% in cash.

What has changed, however, is that these deep-pocketed investors, in the call of the day, are continuing to move away from equities and build up their positions in real estate. As Tiger 21 President Michael Sonnenfeldt previously told MarketWatch, the stock market is “‘priced to perfection’ and rising economic inequality leading to greater polarization in America and elsewhere.”

[central_va]

Once these tariffs kick in it will really stimulate the US economy, huge upside.

By all means rearrange your portfolio over a $30B annual tariff. /sacasm

[Starboard]

The problem with real estate as an investment is you have to maintain it, insure it and pay taxes on it every year.

************

Another problem is liquidity. Selling off your assets to raise cash can be problematic.

However, if you invest in REITs they trade like stocks and are therefore very liquid. That said, if you have to sell shares during a market downturn you may take a loss. REITs also provide a predictable income stream without the hassles of dealing with delinquent renters.

I have done quite well on a total return basis with several REITs that I own.

[freedumb2003]

>>Looks like my allocations, but I’m not super-rich<<

Same here. My risk profile is moderate, which has worked out well with the volatility of the last few years. I seem to go down a little when the market goes way down, upo a little when it goes a little down and up a little more when it shoots up.

Just like a well-behaved portfolio should do.

[freedumb2003]

I meant down a little when it goes way down.

Stupid fingers...

[tbw2]

Real estate is a safe investment where property rights are defended by non-corrupt institutions and you can defend it.

[fuzzylogic]

Could you share which ones you like the most?

[Mr. Jeeves]

Real estate is a safe investment where property rights are defended by non-corrupt institutions and you can defend it.

Looking at today's Federal Government, a safe investment is as much gold and jewelry as you can sew into the hidden pockets of your pants. :)

[arthurus]

I do worry about it. Trump is doing things economically that would seem to defy Economics but his intuition and tactics have been successful and productive to date. I would not wish him to do any differently from what he does. He may fail. The economy may well crash in the next six months or a year. It is perhaps even likely that he fail as he is essentially one man against the Bureaucracy, he SocialDemocrats, AND the Republicans, AND the billionaires and George Soros who is a class by himself and probably the most powerful man in the world. But. There is no other option. Donald Trump is the main and only chance. Support him if you can't afford a stocked multi million dollar bunker fifty feet below the ground. Decrying a choice he makes is unfruitful. His intuition seems sharper than that of 99.9 per cent of men.

We say "Bring it on!" as we buy more ammo and dried food but when/if the Left gets control we will go through what France went through in the 1790s and Russia in the 1920-30s, a political cleansing that will reduce the population. Many many free men and patriots will not survive.

And if the economy does crash soon, we have to trust and back Donald Trump to the hilt in whatever he does to counter it. I believe that we are approaching a Lenin moment or a Napolean moment. I sometimes think I would get out of the country at the last minute but if USA implodes the world explodes. There is no more safe haven.

[wally_bert]

I’d love to get rid of the old pad a few miles from where I am now.

[bgill]

The average and above average joes aren’t slowing down spending for vacations. The tourist trade has increased around here.

[shanover]

When the SHTF,the rich will be the targets. They will never be able to hide no matter what they do or think. They are in the cross hairs,target rich and it will be a bloodbath. They believe acting leftist will save them.

[aMorePerfectUnion]

What types of real estate have you invested in?

[aMorePerfectUnion]

“The problem with real estate as an investment is you have to maintain it, insure it and pay taxes on it every year.

.......

All true, but your income is sheltered because it can be depreciated, and there is an industry to handle everything from financing it to managing it.