Why Real Assets Are Worth Investing In Now

Why real assets are worth investing in now

By Steve Tuttle, Chief Investment Strategist, Signet Financial

The coronavirus pandemic has led investors to rethink their investments.  The environment has changed, creating new risks and new opportunities. 

We believe real assets, such as commodities and real estate, are appealing now.   

When combined with a mix of traditional stocks and bonds, we believe real assets can help in 3 areas:

  1. manage risk
  2. protect against inflation
  3. potentially enhance returns over time.

Real assets provide the framework and resources to facilitate everyday activity in the world economy.  While numerous types of investments could be considered real assets, we focus on two:

  • Commodities are the goods and raw materials used in the global economy, such as agriculture, meat, metals, and energy. They impact our everyday lives. 
  • Real estate are land and properties including apartments, offices, warehouses, stores, etc…

We believe that real assets are poised for a bull market. 

The chart below shows that after years of under-investment and disappointing returns, commodities seem to have turned a corner and started turning up since mid-2020. 

Source:  StockCharts.com, Reuters/Jeffries CRB Index, 10-year chart.

Investing in real assets, such as commodities and real estate, comes with risks and benefits. 

In our opinion, real assets can help generate competitive returns and hedge against inflation in the current environment. For these reasons, we believe commodities and real estate can be an important part of a balanced portfolio.  

Ultimately, whether investing in real assets is wise for you, depends on your financial goals and circumstances. 

We are here to help.  If you would like to discuss whether real assets are right for you, please contact us. 

For more information, please contact Steve Tuttle at 800-390-2755 or This email address is being protected from spambots. You need JavaScript enabled to view it..

IMPORTANT DISCLOSURE

Past performance may not be indicative of future results. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that their future performance will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. The statements made in this newsletter are, to the best of our ability and knowledge, accurate as of the date they were originally made. But due to various factors, including changing market conditions and/or applicable laws, the content may in the future no longer be reflective of current opinions or positions. Any forward-looking statements, information and opinions including descriptions of anticipated market changes and expectations of future activity contained in this newsletter are based upon reasonable estimates and assumptions. However, they are inherently uncertain and actual events or results may differ materially from those reflected in the newsletter. Nothing in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice. Please remember to contact Signet Financial Management, LLC, if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and/or services. No portion of the newsletter content should be construed as legal, tax, or accounting advice. A copy of Signet Financial Management, LLC’s current written disclosure statements discussing our advisory services, fees, investment advisory personnel and operations are available upon request.

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