Insights

In the board game Monopoly, research has shown that on average, the orange squares are among the best investment propositions on the board. 

Global real estate is one of nine major asset classes. However, many may not know it has ranked in the top five asset classes for 13 of the past 17 years, and should play a larger role in Australian investors’ portfolios, says Chris Bedingfield, Principal and Portfolio Manager with Quay Global Investors.

Are we nearing a tipping point? Topic of the week, month, year and decade. Australian house prices.

In financial markets, if it looks certain, it probably isn’t.

Some domestic investors seek diversification by coupling Australian shares with domestic investment property (usually residential).

At Quay, we like to think of ourselves as bottom-up stock and industry analysts. We try to minimise risk through our investment process. However, we are also fully aware of our limitations. No matter how much due diligence we undertake, there will always be unknowns.

Here we are seven years later, and the fear of the great bond collapse is upon us - again. This time, the catalyst appears to be a near universal acceptance that monetary policy is reaching its limit.

It now seems the consensus gets it. Interest rates will stay lower for longer and are unlikely to ‘normalise’ any time soon.

At the start of June we attended the annual National Association Real Estate Investment Trust (NAREIT) conference in New York. It was a good opportunity to meet many of our investees, their competitors, and receive an update on North American real estate.