Private real estate investments typically only available for institutional and wealthy investors can be a stable hedge against inflation and volatility. They’re available for DC retirement plans, but uptake so far has been slow.
One of the key lessons to remember in multi-asset investing is that there is no free lunch, and those who benefit from taking the most risk are likely to feel the most pain when market conditions sour.
However, real estate investment trusts are still seen as a good investment diversifier for 401(k) participants.
Investors must rethink “safe havens” in their portfolio now that bonds simply can’t offer the same combination of portfolio protection and positive income.
Broadly speaking, Northern Trust’s Capital Market Assumptions Working Group expects continued global economic growth, controlled inflation and accommodative monetary policy.
Together, they supply 40% of retirees’ income.