The Investment You Should Have Made
Max Ball
The Investment you Should Have Made
Stable, high returns for any market condition
Stock and crypto markets have proven to be exceptionally volatile. Even traditional safe havens like the S&P 500, top real estate ETFs, and bluechip cryptocurrencies like BTC and ETH have yielded negative returns. Stock markets are down and continue to dip with no end in sight. The top 5 cryptos are all down, with BTC itself down 54% YTD at the time of this writing.
Below is a breakdown of what the value of a $10,000 investment on January 1st, 2022 would be, year to date (YTD).
To say it’s a rough time for investors would be an understatement. The only shining beacon is real estate investing in the Lofty Marketplace.
Lofty Marketplace Returns Dominate Traditional Investment Returns in 2022
Note: Lofty returns calculated assuming an even split of $10k across 22 investment properties with HouseCanary price estimates available on the Lofty marketplace as of January 1st, 2022.
While the real estate sector was one of the best performing assets in the last year, not all real estate investments are created equal.
The popular Vanguard Real Estate ETF (VNQ), composed of publicly traded equity REITS and other real estate related investments, has tanked this year. Lofty marketplace properties yield great appreciation (+5.49% YTD) and rental returns (+5.17% YTD), and are on track to yield a 24.46% IRR for 2022.
Even if property appreciation cools off, properties on the Lofty Marketplace typically yield an 8% - 12% Cash on Cash return from rent alone. Even better, rent is paid daily, making it easy to reinvest and grow returns even more though compounding. As Einstein once said:
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it” - Albert Einstein
Barbell Investment Strategy
While no one can predict the future, a smart investor will prepare for it. A great way to prepare is to adopt a barbell investment strategy, where you optimize your risk-to-reward ratio by investing in both high and low risk assets, while ignoring the middle-of-the-road choices. For example, an investor with a large crypto position can effectively manage risk by also investing in a traditionally safe asset, like real estate.
While crypto and real estate are great investment options for the Barbell strategy, many combinations of assets can be used. Gold has historically been a stable investment that could be used instead of real estate, though gold has yielded negative returns to date, while the Lofty marketplace has delivered steady, positive returns.
Now is the Time for Smarter Diversification
It’s never too late to diversify into real estate, and we make it easy to do so in 5 minutes with only $50.
